Join Our Telegram channel to stay up to date on breaking news coverage
A top Democrat urged the US Treasury Department to halt the setting up of a Strategic Bitcoin Reserve by President Donald Trump, saying it will ”enrich the President and his donors.”
“Such a reserve provides no discernible benefit to the American people,” wrote House Representative Gerald E. Connolly of Michigan in a March 13 letter to Treasury Secretary Scott Bessent.
He added that the plan, called the ”dumbest idea ever” by a Federal Reserve official, would waste taxpayer dollars.
Trump’s Strategic Bitcoin Reserve Would Lead To “Unsound Fiscal Policy”
Connolly also warned in his letter to the Treasury that Trump’s plan could lead to “unsound fiscal policy” because it promotes certain cryptos over others on social media.
This, according to the lawmaker, would benefit nobody other than existing Bitcoin and certain crypto holders, as well as the President himself.
He also said that no need has arisen that justifies an investment in the “volatile and speculative cryptocurrency market.”
Trump’s crypto reserve “would constitute nothing more than a highly speculative taxpayer-backed hedge to provide bitcoin speculators the assurance that when the crash comes, the State will deploy this fund to rescue it,” he added.
Connolly’s arguments contradict statements made by the White House regarding the reserve.
Trump’s crypto and AI czar David Sacks said recently that the fund would only comprise digital assets that have been seized by the government. He also said that the government is exploring cost-neutral strategies to build the reserve’s holdings that would not impact taxpayers.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Trump’s Proposed Strategic Bitcoin Reserve Presents A Conflict Of Interest
Connolly also argued that Trump’s push for a US strategic crypto reserve presents a conflict of interest, given the President’s family’s ownership of World Liberty Financial.
By introducing laws that favor digital assets and pushing for the US crypto reserve, Connolly argued the President and his family stand to benefit from the DeFi project, which has substantial digital asset holdings and continues to buy more crypto.
DONALD TRUMP’S PROJECT JUST BOUGHT $100K OF $SEI
World Liberty Fi addresses sent $25M USDC to a separate address last week.
This address just purchased $100K of SEI on Ethereum, and sent it back to the main WLF address. pic.twitter.com/wxVSyiFDSK
— Arkham (@arkham) March 13, 2025
Related Articles:
Best Wallet – Diversify Your Crypto Portfolio
- Easy to Use, Feature-Driven Crypto Wallet
- Get Early Access to Upcoming Token ICOs
- Multi-Chain, Multi-Wallet, Non-Custodial
- Now On App Store, Google Play
- Stake To Earn Native Token $BEST
- 250,000+ Monthly Active Users
Join Our Telegram channel to stay up to date on breaking news coverage
