Why is the US government transferring 225 million USDT while being accused of selling Bitcoin?

The U.S. government has just transferred out 225.365 million USDT. Behind this seemingly ordinary on-chain transfer, there are deep internal disagreements over the management of crypto assets. On one side is the Department of Justice handling seized assets, and on the other is the White House promoting a strategic Bitcoin reserve — two completely opposite policy lines operating simultaneously, exposing coordination flaws in the Trump administration regarding crypto asset issues.

The Asset Scale Behind the Transfer

According to on-chain data from Lookonchain and Arkham, the U.S. government currently holds approximately $30.7 billion worth of crypto assets, with a fairly concentrated composition:

The vast majority of these assets come from law enforcement seizures — confiscated items from well-known dark web cases such as Silk Road and the Chen Zhi case. Previously, the U.S. government handled such assets through auctions for liquidation, but this model is now being challenged.

Specific Manifestations of Policy Disagreements

The recent USDT transfer has attracted attention because it triggered public questioning within the government:

Bitcoin Sale Controversy

According to relevant reports, on November 3, 2025, the Department of Justice instructed the U.S. Marshals to sell 57.55 BTC (approximately $6.367 million) via Coinbase Prime from the Samourai Wallet developer case. This action directly violates Executive Order No. 14233 signed by Trump in 2025 — which explicitly states that Bitcoin obtained through criminal forfeiture should be included in the “National Strategic Bitcoin Reserve” and prohibits sales.

Official Response

• Senator Cynthia Lummis questioned: “Why is the U.S. government still selling Bitcoin when Trump explicitly directed that these assets should be retained? While other countries are increasing their Bitcoin holdings, we are wasting these strategic assets.”

• Patrick Witt, Executive Director of the White House Digital Asset Advisory Committee, said they are further investigating the matter, implying that such sales may not align with policy intentions.

Deep Policy Logical Conflicts

This contradiction reflects the collision of two different policy approaches:

Department of Justice’s approach: Assets seized through law enforcement are government revenue and should be liquidated via auctions to supplement the treasury. This is the traditional asset disposal logic.

White House’s approach: Bitcoin should be viewed as a strategic reserve asset, similar to gold reserves, requiring long-term holding to enhance national asset status. This is an emerging national asset allocation logic.

According to reports, the U.S. government currently holds about $30.7 billion in crypto assets, with Bitcoin accounting for 97%. If the White House’s intention is to establish a strategic Bitcoin reserve, these existing holdings would serve as a natural starting point. But if the Department of Justice continues to sell according to traditional logic, this reserve plan will be continually undermined.

Why Transfer USDT Instead of Bitcoin

From this USDT transfer, it may reflect a pragmatic choice by the government:

• USDT, as a stablecoin, has higher liquidity needs and may be used for specific payments or asset adjustments.
• Bitcoin is being protectively held in place, indicating the government’s implementation of a “no sale of Bitcoin” new policy.
• This differentiated handling suggests the government is reclassifying crypto assets — distinguishing between “strategic reserves” and “liquid assets.”

Market Signals and Future Trends

This policy disagreement has implications for the market:

Short-term signal: The internal attitude of the U.S. government toward Bitcoin is shifting from “law enforcement asset” to “strategic asset,” reinforcing Bitcoin’s scarcity narrative.

Long-term impact: If the White House ultimately wins this policy battle, the U.S. may indeed establish an official Bitcoin reserve, which would be a significant recognition of Bitcoin at the sovereign state level and could inspire other countries to follow suit.

Risks: If the Department of Justice continues to act unilaterally, the government’s crypto asset policy could become chaotic, which would undermine Bitcoin’s value support.

Summary

The U.S. government’s transfer of 225.365 million USDT is more than just an on-chain transaction; it exposes internal divisions within the Trump administration regarding crypto asset management. On one hand, aiming to establish a strategic Bitcoin reserve, and on the other, continuing to sell Bitcoin — this contradiction will ultimately be resolved through policy coordination. Based on current public opinion pressure, the White House’s “accumulation” stance is gaining the upper hand, implying that the U.S. government is likely to shift from a “seller” to a “buyer” of Bitcoin. This marks an important turning point for the entire crypto market, transitioning from “law enforcement liquidation” to “national strategy.”