In a long-awaited move that has angered crypto investors, former President Donald Trump has proposed creating a national reserve of bitcoin if he is re-elected to the White House in November 2024.
Trump’s Plan to Create National Bitcoin Reserve Faces Backlash
At the Bitcoin 2024 conference on July 27, Trump said, Advertise He has announced his intention to create a central repository for all bitcoins held or acquired by the U.S. government, which he envisions as a long-term national asset for the benefit of all Americans.
However, the proposal has raised red flags among former prosecutors and legal professionals, who claim that Trump plan This would likely divert seized digital assets away from their intended purpose of compensating victims of crimes.
According to Under current U.S. forfeiture laws, seized assets, including Bitcoin, are typically liquidated to pay victims and support law enforcement efforts, Bloomberg reported.
However, the report notes that the former president’s pledge to keep government-owned Bitcoin or other cryptocurrencies directly challenges this fundamental principle of asset confiscation.
Amanda Wick, a former federal prosecutor and principal at Incite Consulting, expressed concerns 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 fraud.
Amanda Wick stressed the importance of compensation for victims, and criticized the prioritization of Bitcoin stocks over “legitimate compensation” for those harmed by criminal activity in the industry.
Legal experts criticize Trump’s candidacy
The United States currently holds approximately $12 billion worth of various cryptocurrencies, including Bitcoin (203,230), Ethereum (50,224), and over $12 million worth of Tether’s USDT. stable currencywhich arose from criminal and civil forfeiture cases overseen by federal prosecutors and U.S. judges.
“The primary purpose of asset forfeiture is to deter and punish criminal activity by depriving criminals of property used or acquired through illegal conduct,” former Justice Department prosecutor Elizabeth Boyson told Bloomberg. “Trump’s proposal is inconsistent with the purpose of asset forfeiture or what the law currently allows.”
Meanwhile, legal experts are reportedly viewing Trump’s shift toward cryptocurrencies and Bitcoin with “deep skepticism.”
According to Bloomberg, these experts see Trump’s strategy as a “trick” to win voters’ favor. Digital Assets As former Attorney General Laurel Loomis Raymond bluntly told Bloomberg, “It doesn’t make a lot of sense” from a political standpoint.
At the time of writing, Bitcoin has managed to consolidate above key support walls at $56,800. This represents a slight change from Tuesday’s record high of 0.8%, but is generally good after a quick rebound from $49,000 on Monday.
Featured image by DALL-E, chart by TradingView.com
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