In a long-awaited move that has outraged cryptocurrency investors, former President Donald Trump has proposed the creation of a national bitcoin reserve if he is elected to the White House again in November 2024.
Trump's plan for a national bitcoin reserve faces criticism
At the bitcoin 2024 conference on July 27, Trump Announced his intention to create a centralized repository for all bitcoin held or acquired by the US government, which he envisions as a long-term national asset for the benefit of all Americans.
This proposal, however, has raised alarms among former prosecutors and legal professionals, who argue that Trump's plan It could potentially divert seized digital assets from their intended purpose of compensating crime victims.
bitcoin-stockpile-alarms-forfeiture-experts” target=”_blank” rel=”noopener nofollow”>According According to a Bloomberg report, under current forfeiture laws in the United States, confiscated assets, including bitcoin, are typically liquidated to reimburse victims and support law enforcement efforts.
However, the report notes that the former president's promise to withhold the government's holdings of bitcoin or other cryptocurrencies directly challenges this fundamental principle of asset forfeiture.
Amanda Wick, a former federal prosecutor and director of Incite Consulting, expressed concern about the implications of Trump's decision. strategyhighlighting that a significant portion of the seized cryptocurrencies likely belong to victims of cybercrimes such as hacks, ransomware attacks and scams.
Emphasizing the importance of restitution for victims, Amanda Wick criticized prioritizing a bitcoin reserve over “legitimate compensation” for those affected by criminal activity in the industry.
Legal experts criticize Trump's candidacy
The United States currently holds approximately $12 billion in various cryptocurrencies, including bitcoin ($203,230), ethereum ($50,224), and over $12 million in Tether's USDT. stablecoinarising from criminal and civil forfeiture cases overseen by U.S. federal prosecutors and judges.
“The primary goal of asset forfeiture is to deter and punish criminal activity by depriving criminals of property used or acquired through illegal conduct,” former Department of Justice (DOJ) prosecutor Elizabeth Boison told Bloomberg. “Trump’s proposal is inconsistent with the purpose of asset forfeiture or what the law currently allows.”
Meanwhile, legal experts view Trump's pivot toward cryptocurrencies and bitcoin with “deep skepticism.”
According to Bloomberg, these experts see Trump's strategy as a “ploy” to win the favor of the digital asset As former prosecutor Laurel Loomis Rimon bluntly told Bloomberg: “It doesn’t make a lot of sense” from a policy standpoint.
At the time of writing, btc has managed to consolidate above key support walls at $56,800. This represents a slight difference from Tuesday’s price with a record gain of 0.8%, but is overall healthy after a quick rebound from $49,000 on Monday.
Featured image of DALL-E, chart from TradingView.com
