Pierre Rochard has made an „urgent“ appeal to lawmakers to create a strategic reserve and deposit the Bitcoins seized by law enforcement there
Bitcoin (BTC) influencer Pierre Rochard has called on US lawmakers to prevent more than $1.6 billion worth of seized Bitcoins from being auctioned, proposing instead that the confiscated coins be placed in a „strategic reserve“.
Rochard, a Bitcoin maximalist who recently kicked up a fuss by talking about the total supply of Ether (ETH), would like the authorities to draft and pass a bill to amend the Judiciary Act of 1789, which would allow the US Marshals Service to hold any Bitcoin it receives.
In a post on his blog on 16 December, Rochard expressed his opposition to the auctioning of 69,370 Bitcoins seized by the IRS in November from an alleged Silk Road hacker, noting that the US Attorney’s Office has filed a civil complaint over the confiscation of the BTCs.
Speaking to Cointelegraph, Rochard stressed the „urgent“ need to update the legislation, as he expects the U.S. Marshals Service to win the case and thus auction off Bitcoins „within the next six months.“ In his view, „we need to get this law passed very quickly so that we can stop the auction“.
In his blog, Rochard pointed out, that in the 2014-2015 period, some auctions for more than 144,000 Bitcoins yielded only $122 million, while the same cryptos would have yielded the government more than $3.32 billion today:
„In my view, the rapid auctioning of the seized Bitcoins was a mistake in hindsight.“
Although the coins seized in November are now worth $1.6 billion, Rochard suggests that the US could make more money by holding these Bitcoins for a longer period, urging lawmakers to allow „Congress time to deliberate on the disposition of this unique asset.“
„The Federal Reserve can create an infinite amount of US dollars, i.e., the proceeds of the auction. Bitcoins cannot be created out of thin air and there is a limited amount of them. […] A large strategic reserve of Bitcoins could be crucial to our national security.“
Rochard, moreover, predicted that Bitcoin will soon play a „crucial“ role in the treasuries of national governments, predicting that „in the next decade we will see governments develop large sovereign wealth funds denominated in Bitcoin“.
The influencer concluded:
„If the United States wants to maintain its leadership, both financially and in science and technology, then we should develop a Bitcoin reserve fund at the federal level. At first, we could put seized coins into this fund, but then as we move forward, it would be nice to add others as well.“