Taxpayers Missed Out on $17 Billion Due to Government Bitcoin Sales, Says White House Crypto Czar
In a striking statement made on Friday, David Sacks, the White House crypto czar, revealed that taxpayers have potentially lost over $17 billion due to previous federal administrations’ handling of Bitcoin. This significant loss is attributed to the government’s ad hoc strategy regarding the Bitcoin it has acquired through civil and criminal asset forfeitures over the past decade.
Bitcoin Accumulation and Losses
During an exclusive interview with ABC News’ Senior White House Correspondent, Selina Wang, Sacks explained that the U.S. government currently holds approximately 400,000 Bitcoins, which were seized through various legal measures. However, he criticized the administration’s historical approach of selling these assets "almost willy-nilly," resulting in the liquidation of about half of its holdings for only around $400 million. As of today, the value of the remaining Bitcoins would exceed $17 billion, revealing a substantial missed opportunity for taxpayers.
Executive Order on Cryptocurrency
Sacks’ remarks coincide with President Donald Trump’s signing of an executive order on Thursday, which establishes a strategic Bitcoin reserve and a U.S. digital assets stockpile. White House officials emphasized that Bitcoin is being singled out from other cryptocurrencies due to its status as the original cryptocurrency and the fact that it has a capped supply, further underscoring its potential value to the U.S. economy.
Addressing Potential Conflicts of Interest
When questioned about the potential conflict of interest arising from President Trump’s recent involvement in the cryptocurrency sector—following the launch of his own cryptocurrency venture, World Liberty Financial—Sacks dismissed the concerns. "It’s not an issue," he stated firmly and suggested that inquiries regarding specific company transactions should be directed to them, as he does not monitor individual corporate activities.
Policy on Government Accumulation of Bitcoin
Sacks clarified that the government is not planning to purchase additional Bitcoin; rather, it aims to leverage already-acquired assets from forfeitures. “Any further accumulation of Bitcoin by the government must be budget-neutral,” he stated, emphasizing that it should not contribute to the national deficit or involve taxing citizens.
However, he acknowledged that the specifics of how the government could "accumulate" more Bitcoin in a budget-neutral manner are still under consideration and that the administration is in the planning phase. The executive order instructs the secretaries of the Departments of Commerce and Treasury to explore methods for potential accumulation without incurring costs to taxpayers.
Strategic Importance of Bitcoin
Comparing Bitcoin to the nation’s gold reserves, Sacks conveyed the administration’s long-term vision regarding Bitcoin holdings. “We’ve got about a trillion dollars of gold in Fort Knox and other depositories,” he noted, explaining that the government does not liquidate these assets so as to maintain a strategic reserve. He expressed a belief that retaining Bitcoin will be beneficial for the United States in the future.
“There could always be a change of heart,” Sacks stated, referring to the possibility that the president might choose to liquidate the cryptocurrency holdings in a future executive order. Nonetheless, he echoed a commitment to holding on to the Bitcoin for the time being.
Future Audits and Assessments
In a related development, White House officials indicated that an official audit of the government’s digital asset holdings has never been completed. Following the recent executive order, an audit is expected to take place, which will provide a clearer understanding of the U.S. government’s cryptocurrency possessions.
As the administration moves forward with its cryptocurrency strategies, these developments signal a significant shift in how the U.S. government approaches digital assets, especially with an eye toward maximizing their value for American taxpayers.
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