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Don't panic.
This is it The essence of the message From Asset Reality's Aidan Larkin on this week's Empire Roundup. Jason Yanowitz and Santiago Santos specifically asked him about all the US government Bitcoin.
Essentially, the court's final approval is par for the course for any civil forfeiture. No, this does not mean that the United States is pressing the sell button immediately.
“There is a very strict process that must be followed,” Larkin said.
“At some point in the future, it will go through normal government processes. There will be a hearing on the civil forfeiture request. “They will get the green light and then it will fall into the normal marshal process and the public domain,” he added. Asset Reality, an investment firm, is helping Both Santos and Janowitz) governments manage confiscated assets, so Larkin is not just an armchair expert.
From here, we will eventually see Coinbase move the existing Bitcoin on-chain before selling it.
Larkin said blaming the price action on the possibility of trying to determine when the government will sell some of its stock is not the right move. Instead, when you see this type of selling pressure, it is most likely due to speculation and selling to themselves.
And now you know.
So how did we get here? Well, a Nevada company called Battle Born Investments initially sought to prevent the United States from ditching Bitcoin. However, a California judge invalidated their request earlier this week, which allows the US to move forward with civil forfeiture, Larkin noted.
The probability of turning the Bitcoin in question into a potential strategic reserve of Bitcoin is not very high either, so don't get your hopes up.
(ICYMI: This summer, Trump He said He planned to make it so that the United States would hold all existing Bitcoin and use it as a strategic reserve.)
To sum it up: Any Bitcoin sold must first go through legacy processes. We're talking about pre-crypto operations designed for captured assets like gold.
After that, there may be a large number of agreements to be concluded, ranging from using the funds generated to compensate victims to asset-sharing agreements with other governments. It's very complicated.
Moreover, as Larkin points out, does the United States really want to use crime-linked Bitcoin for its reserve stock? It seems unlikely.
When dealing with the government, always assume that there will be a lot of bureaucratic red tape. What seems cut and dry probably isn't.
Instead, Yanowitz believes we could see — if we get a reserve — the government buying up bitcoin mined on US soil to stash it. Frankly, this seems more interesting than simply linking Bitcoin to the Silk Road.
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