Bitcoin Reserves And The Incentives Of Civil Asset Forfeiture

Yesterday, President Trump announced that the long -awaited strategic “Bitcoin” reserves on the social truth, and many of them in space are angry.

First, it appears that the reserve is only far from bitcoin. “They are doing Dei with Charles Hoskinson,” David G. Morris, writer of Coindsk president. Books on x – Cardano was announced from Hoskinson (ADA) in the reserve. “Card Research to buy Cardano,” is another user to publish.

Others face a problem with the potential investment interests surrounding the Trump administration: Trump's advertisement is a “new level of corruption”, ” books Derik Martin Communications Strategy, in detail David SAC investments in BitWise. “You can get the liquidity of the exit and you will get the exit liquidity, as everyone gets the exit liquidity.” to publish Bitcoin Policy Institute is a colleague of Troy Kroos, along with a picture of Opera. (The bags have Since mentioning He sold all his encrypted property).

What all these criticisms share is that they completely miss this point. Whether the reserve consists of additional metal currencies, or may serve thorny interests, they have a little actual result for those who carry bitcoin.

What is the result you enjoy a lot, is the issue of how to finance the aforementioned reserve. On the one hand, many speculate that the United States may transfer taxpayer money to buy the cryptocurrency – a proposal that Congress must inevitably go through – which seems unlikely, like Trump Rumor To issue a new advertisement on “investments” today.

Another approach, likely, like It was already identified In Trump's executive order to “strengthen US leadership in digital financial technology”, it will be that “derived from the encrypted currencies that the federal government legally seized through law enforcement efforts.”

This is good, you will say that, because I got both legally Bitcoin and I was never, and I will never participate in a criminal activity. This is exactly where you are wrong.

Bitcoin, which has been “legally seized by the federal government”, does not only include bitcoin derived through criminal prosecutions. In addition, Bitcoin can be legally seized through a process called the confiscation of civil assets: a funny game that the government does not have to accuse you of crime, but it can instead accuse it. The same thing From a crime.

The Kato Institute was identified In a publication The call to reform the civil assets confiscation law, the New York police routinely consume cars used in the only identity document, and in Florida, the police regularly take over the $ 100 cash interest to purchase illegal articles. In the most surprising example, Kato sheds light on a case from Philadelphia, where the police tried to seize the home and grandmother because, without her knowledge, he sold her son less than $ 200 of marijuana from the house. In Philadelphia alone, the confiscation of civil assets was very amazing, to the extent that the city seized more than 1,000 homes, more than 3000 vehicles, and more than $ 44 million in cash over 11 years.

The problem with the confiscation of civil assets is that it reflects the burden of proof. Instead of condemnation until it is proven innocent, it is up to the owner Sperm To use it – in a crime. The cost of this litigation is what makes the confiscation of civil assets close to the impossible to fight.

While the government can have – and the application of the confiscation of civil assets to encrypted currencies, which usually stand out in court documents under its titles alone, such as the United States account against Binance 188746, it had never had a strategic interest in its application on a broader scale. Bitcoin will be seized and lost to the government, but the government will eventually be sold for dollars in any case.

If we take Trump's executive order of the nominal value, this may change now, giving the government an incentive to implement the confiscation of civil assets on bitcoin on a broader scale.

This is a problem, where we are likely to track a lot of Bitcoin again to touch the evasion of sanctions, Darknet market or any alleged illegal activity. The question becomes, then: How many jumps do we go to? How many UTXOS do we disintegrate to find that it is legitimate that Bitcoin be seized from a possible illegal activity on behalf of the government to help build its strategic reserves?

The other problem is that if the government accuses Bitcoin, which it holds to share the facilitation of the crime, then it may have fully obtained bitcoin, and it has nothing to do with the alleged criminal activity, and does not even need to be aware of it – the government may still legally, legally, come out of Bitcoin from you.

Taking Trump's executive order in Face, it seems that the chanting on the strategic Bitcoin reserves may not be the smartest step until it is clarified that the confiscation of civil assets will not be employed to boost the reserve. After all, it is a concept that must be fixed, and is not encouraged.

This is a guest post by L0la L33tz. The opinions that are expressed are completely property and do not necessarily reflect the views of BTC Inc or Magazine Bitcoin.