US Government Sends $288M to Coinbase Prime, Raising Questions About Bitcoin Reserve Rules

The US government has sent $288 million in cryptocurrency to Coinbase Prime, raising questions about the rules governing the use of Bitcoin reserves.

According to Lookonchain, US government-tagged wallets transferred 3,941 BTC and 30,007 ETH to Coinbase Prime over approximately eight hours. The combined value of this transfer is estimated at around $288.33 million.

The US Marshals Service selected Coinbase Prime in July 2024 for custody and advanced trading services covering large-cap digital assets. However, the service's dual role leaves custody consolidation, asset administration, and authorized disposal as distinct operational possibilities.

As per a March 2025 executive order, Government BTC deposited into the Strategic Bitcoin Reserve 'shall not be sold.' However, its definition covers a narrower pool than all crypto controlled by federal agencies. Reserve status comes from legal and accounting records, beyond the information carried by wallet labels.

The transfer of ETH follows a separate policy, where finally forfeited non-Bitcoin assets belong in the U.S. Digital Asset Stockpile, where Treasury must set 'responsible stewardship' strategies under applicable law.