SEC Chair: 'Remains to Be Seen' Whether US Will Seize Venezuela's Reported Bitcoin

The U.S. Securities and Exchange Commission (SEC) chair said it remains to be seen whether the U.S. will seize reported Bitcoin holdings in Venezuela after the country's president was removed from power. In an interview with Fox Business, Paul Atkins, SEC Chair, stated he is not involved in decisions regarding the seizure of Venezuela's reported $60 billion in cryptocurrency.

Blockchain analysts have been unable to verify whether Venezuela possesses the reported 600,000 BTC. The Maduro regime had previously experimented with digital assets, including an oil-backed digital currency launched in 2018.

Atkins noted that the potential seizure of Venezuela's Bitcoin could have wider implications, but he declined to comment directly on whether the U.S. would proceed with such action. He emphasized that others in the administration would handle any related decisions.

What Drives the Uncertainty Over Seizure?

U.S. forces removed President Nicolás Maduro and his wife from Venezuela, reportedly bringing them to New York to face criminal charges. The move has reignited speculation about the potential presence of a large "shadow" Bitcoin reserve in Venezuela. Some analysts suggest that if accurate, Venezuela could become the largest sovereign holder of BTC, potentially rivaling private sector holdings.

The U.S. government has not confirmed the existence of such a reserve. However, the idea has gained traction on social media and in financial circles, with some reports suggesting the U.S. might consider adding any seized Bitcoin to its strategic reserves.

How Are Markets Responding to the Venezuela Developments?

Bitcoin (BTC) has traded in a tight range near $91,000, showing resilience despite the geopolitical uncertainty. Traders appear unfazed by the Venezuela developments, with no significant outflows from exchanges. The calm response is consistent with past patterns, where conflicts have led to short-term volatility but not sustained market panic.

Institutional demand for Bitcoin has softened slightly, with U.S.-listed spot BTC ETFs recording net outflows this week. However, corporate demand remains strong, with Strategy Inc. purchasing 1,287 BTC for $117 million, bringing its total holdings to 673,783 BTC.

What Are the Broader Crypto Regulatory Developments?

Lawmakers are preparing to address key issues in the Digital Asset Market Clarity Act of 2025, which aims to establish a regulatory framework for the U.S. crypto industry. The bill will likely define digital commodities and clarify roles for the SEC and CFTC in overseeing the sector.

Senate committees are expected to hold markup hearings for the bill this week. One of the most contentious issues is the treatment of stablecoin-linked rewards, which some banks argue could undermine traditional financial services. Democrats are also pushing for clearer ethics rules to prevent public officials from profiting off digital asset ventures.

What Will Drive BTC's Performance in the Coming Weeks?

Bitcoin traders are closely watching macroeconomic developments, particularly the upcoming U.S. nonfarm payrolls report for December. This data could provide insight into the Federal Reserve's rate policy in 2026. A stronger-than-expected labor market could increase demand for higher-risk assets like Bitcoin.

Technical indicators suggest Bitcoin is testing key support levels near $90,000. If the price consolidates above this level, it could signal a shift toward selective re-risking and a potential recovery toward $94,000. However, any further decline below this support could extend the correction toward $85,500.

The coming week will also feature a major U.S. consumer price index (CPI) report, which could influence inflation expectations and investor sentiment toward risk assets.