U.S. Bitcoin Reserves in Question as Lummis Warns of “Strategic Blunder”

Senator Cynthia Lummis criticized the U.S. for potentially selling off Bitcoin reserves, calling it a grave mistake. A new report reveals that the government may hold far fewer BTC than previously believed.

The United States government may have significantly reduced its Bitcoin holdings, sparking debate and criticism from prominent pro-Bitcoin advocates. According to newly disclosed data from a Freedom of Information Act (FOIA) request by independent crypto journalist L0la L33tz, the U.S. Marshals Service (USMS) currently holds just 28,988 BTC—valued at approximately $3.4 billion. This figure is far lower than the previously estimated 189K to 198K BTC.

Senator Cynthia Lummis, a leading Bitcoin supporter, labeled the potential sell-off as a “strategic blunder” that could set the nation back in the global Bitcoin adoption race. “If true, this is a total strategic blunder and sets the United States back years in the Bitcoin race,” Lummis stated.

David Bailey, Chairman of the Bitcoin Conference, echoed these concerns but viewed the situation optimistically for Bitcoin’s scarcity. “It looks like we might know how many Bitcoin the U.S. government is holding now, and it’s about 85% less than thought,” Bailey commented. He suggested that the discrepancy likely stems from off-chain sales, possibly executed through custodians like Coinbase, which also acts as the USMS custodian.

Blockchain analyst Sani supported this theory, noting that swaps through major custody firms could leave no on-chain footprint. Bailey also suggested that significant holdings may have been moved through such methods to avoid public visibility.

Others pointed out that Arkham Intelligence still tracks approximately 198K BTC linked to U.S. government wallets, including assets confiscated from events like the Silk Road bust and the Bitfinex hack. However, not all of these holdings may be officially forfeited or reflected in USMS custody reports.

A notable portion of the BTC holdings is still under legal review or pending return, such as the Bitfinex assets that a court ordered to be returned earlier this year.

Meanwhile, the idea of a U.S. Strategic Bitcoin Reserve (SBR), once championed by President Trump and supported by Lummis, now appears increasingly unlikely. As of July 2025, Polymarket places the odds of an official SBR being established by year-end at just 30%, down from 80% earlier this year.

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