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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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A top congressional Democrat is pushing back against President Donald Trump’s plan to establish a strategic Bitcoin reserve, calling it fiscally irresponsible and riddled with conflicts of interest.
On Thursday, Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, sent a letter to Treasury Secretary Scott Bessent urging the department to halt all efforts to create the cryptocurrency reserve.
Connolly warned that the initiative primarily serves to enrich Trump and his financial backers rather than benefiting the American public.
“Such a reserve provides no discernible benefit to the American people but would significantly enrich the President and his donors,” Connolly wrote.
He also criticized the plan as reckless fiscal policy, arguing that it would artificially elevate Bitcoin over other currencies through social media hype and misallocate taxpayer funds. Connolly cited a Federal Reserve official who had reportedly dismissed the idea as “the dumbest” proposal ever.
Trump’s Bitcoin Reserve Plan Taps Government’s Crypto Holdings
Trump’s executive order, signed earlier this month, directs the federal government to establish a strategic Bitcoin reserve, initially capitalized with about 200,000 Bitcoin already in the government’s possession.
Additionally, the order creates the US Digital Asset Stockpile, a separate entity designed to manage other forfeited cryptocurrencies, including Ethereum, XRP, Solana and Cardano. While the Treasury may explore options for managing these digital assets, it will not actively expand the stockpile beyond assets seized through legal actions.
Democrat Flags Trump’s Stake in Crypto Ventures, Citing Conflict of Interest
Further, Connolly’s letter raises concerns over Trump’s personal financial ties to the crypto industry, arguing that his business interests could influence federal policy in ways that serve him personally.
The lawmaker specifically pointed to Trump’s stake in World Liberty Financial, a crypto-based financial services company that aims to function as a digital asset bank. Trump, who maintains a significant ownership position in the venture, stands to profit immensely if federal policy bolsters cryptocurrency values, he said.
Additionally, Connolly flagged Trump’s involvement in $TRUMP, a meme-based cryptocurrency that has generated substantial revenue through trading fees. Reports suggest Trump-linked entities have already raked in as much as $100m from the token, which critics have described as his “most lucrative get-rich scheme yet.”
Beyond the ethical concerns, Connolly said that Trump has moved forward with the Bitcoin reserve plan without seeking congressional input or authorization. The lawmaker argued that such an initiative, which could have far-reaching implications for financial markets and federal monetary policy, demands a thorough legislative review.
As pressure mounts, the Treasury Department has yet to publicly comment on whether it will proceed with Trump’s controversial executive order.
