Senator Cynthia Lummis Slams DOJ for Ignoring Trump’s BTC Reserve Order - Crypto Clash Escalates

Washington's crypto war hits a new flashpoint as Senator Cynthia Lummis unleashes on the Department of Justice. The charge? Blatantly disregarding a presidential directive to establish a Bitcoin reserve.

The Regulatory Standoff

This isn't just bureaucratic friction—it's a fundamental clash over the role of digital assets in national strategy. The DOJ's inaction signals a deep institutional resistance, putting it on a direct collision course with pro-crypto lawmakers and a former administration's financial vision. The move exposes the fragmented state of U.S. crypto policy, where executive orders can be shelved by agency inertia.

What a BTC Reserve Actually Means

Forget the theoretical debates. A formal U.S. Bitcoin treasury reserve would be a seismic legitimization event. It telegraphs long-term national holding, potentially stabilizing the asset class against speculative froth and inviting institutional capital on an unprecedented scale. The delay isn't just procedural; it's a strategic stall on America's financial future.

The Bigger Picture: Sovereignty & Strategy

Nations are already accumulating digital gold. By dragging its feet, the DOJ—intentionally or not—is ceding ground. This isn't about partisan politics; it's about monetary sovereignty in a digital age. Every day of delay is a day another nation-state strengthens its crypto-financial position. The order was a play for strategic advantage; ignoring it is a gift to global competitors.

Of course, the old-guard finance brigade probably sees this as a win—nothing disrupts a good, quiet oligopoly like a transparent, borderless reserve asset. The fight over this Bitcoin order isn't just legal; it's a battle for the very architecture of the next century's economy. The DOJ might have buried the memo, but the market won't forget the precedent it tried to set.

TLDR

• Senator Cynthia Lummis expressed concern over the sale of Bitcoin by the U.S. government.
• The Bitcoin was part of a $6.37 million settlement involving the founders of Samourai Wallet.
• On-chain data showed that Bitcoin was sent to a Coinbase Prime address, now showing a zero balance.
• President Donald Executive Order 14233 directs all seized Bitcoin to be preserved in a Strategic BTC Reserve.
• Lummis questioned why the government sold Bitcoin despite the order to retain it for the BTC Reserve.

Senator Cynthia Lummis raised concerns over the U.S. government’s handling of Bitcoin from a recent criminal case, questioning compliance with Executive Order 14233, which mandates preservation of “Government BTC” for a Strategic BTC Reserve. The DOJ reportedly liquidated 57.5535 Bitcoin, contradicting the directive, and sent it to a Coinbase Prime account later found empty. Lummis expressed concern, stating the government’s action may violate President Trump’s order regarding the BTC reserve.

Senator Cynthia Lummis Challenges Government Bitcoin Actions

Senator Lummis questioned the Justice Department’s decision to transfer and potentially sell bitcoin obtained through a recent settlement. On-chain data confirmed the 57.5535 BTC went from a wallet linked to the defendants to a Coinbase Prime address.

Why is the U.S. gov still liquidating bitcoin when @POTUS explicitly directed these assets be preserved for our Strategic Bitcoin Reserve? We can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report. https://t.co/XW5WxsfliA

— Senator Cynthia Lummis (@SenLummis) January 6, 2026

That address, tied to Coinbase, now shows a zero balance, indicating the BTC may have been sold already.

The Bitcoin was part of a settlement involving Keonne Rodriguez and William Lonergan Hill, founders of Samourai Wallet. They were accused of laundering $237 million tied to criminal activities between 2015 and 2024.

The DOJ signed the Asset Liquidation Agreement on November 3, 2025, under Assistant U.S. Attorney Cecilia Vogel. The agreement involved transferring $6.37 million in Bitcoin to the U.S. Marshals Service.

Lummis, who leads the Senate Banking Subcommittee on Digital Assets, responded directly to the report. She wrote, “Why is the U.S. gov still liquidating Bitcoin when POTUS explicitly directed these assets [to] be preserved for our Strategic Bitcoin Reserve?”

She emphasized that the government should comply with the BTC reserve directive. She called the report “deeply concerning.”

Executive Order 14233 and Compliance Questions

President TRUMP issued Executive Order 14233 earlier in 2025 to establish a Strategic BTC Reserve. The order prohibits federal agencies from selling Bitcoin seized or forfeited in criminal cases.

Instead, all “Government BTC” must be transferred to the national reserve. The policy was introduced to help the U.S. maintain BTC exposure without direct purchases.

Critics now question whether the DOJ followed this directive in the Samourai Wallet case. Some argue the transferred Bitcoin was used for settlement, not forfeiture.

An unnamed X user said the order may not apply since the payment was made in dollars and agreed upon voluntarily. This interpretation has not been confirmed by the DOJ.

Senator Lummis has long supported Bitcoin as a national strategic asset. She continues pushing for federal compliance with crypto-related executive orders.

Online Debate Grows Over BTC Reserve Strategy

The decision to possibly liquidate the Bitcoin sparked strong reactions online. Some defended the sale, arguing market timing justifies it.

One user wrote, “Better to liquidate this digital ‘asset’ at $90,000 than at potentially less than $10,000 in a few years.”

Critics of the BTC reserve concept say it lacks a strong economic basis. George Selgin from the Cato Institute wrote that the idea “made no sense.”

Jason Yanowitz, co-founder of Blockworks, supported the reserve but criticized expanding it beyond Bitcoin. He said this MOVE could erode public trust.

He warned that including other coins “sets a horrible precedent.” He also called for a clearer framework to avoid confusion.

The Strategic BTC Reserve remains a divisive issue within policy and crypto circles. So far, no agency has confirmed the exact disposition of the 57.5535 BTC.

As of now, the Coinbase Prime address used in the transfer holds no Bitcoin. No further official statements have been made by the DOJ regarding the transaction.