Nikolas Sargeant
A leading congressional Democrat is challenging President Donald Trump's strategic Bitcoin reserve plan, labeling it fiscally reckless and compromised by conflicts of interest.
Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, formally requested Treasury Secretary Scott Bessent halt all cryptocurrency reserve development efforts in a letter sent Thursday. Connolly contends the initiative primarily benefits Trump and his financial supporters rather than serving public interests.
"Such a reserve provides no discernible benefit to the American people but would significantly enrich the President and his donors," Connolly stated in his communication.
He further criticized the proposal as irresponsible fiscal policy, arguing it would artificially elevate Bitcoin through social media promotion and misuse taxpayer resources. Connolly referenced a Federal Reserve official who reportedly dismissed the concept as "the dumbest" proposal ever presented.
Government Crypto Holdings Targeted for Reserve
Trump's executive order, signed earlier this month, instructs the federal government to establish a strategic Bitcoin reserve initially funded with approximately 200,000 Bitcoin already under government control.
The order additionally creates the US Digital Asset Stockpile, a separate entity designed to manage other confiscated cryptocurrencies, including Ethereum, XRP, Solana and Cardano. While Treasury may explore management options for these digital assets, it will not actively expand holdings beyond those seized through legal proceedings.
Personal Financial Entanglements Raise Ethical Questions
Connolly's letter highlights Trump's personal cryptocurrency industry connections, suggesting his business interests could inappropriately influence federal policy to his personal advantage.
The lawmaker specifically referenced Trump's stake in World Liberty Financial, a crypto-based financial services company positioning itself as a digital asset bank. Trump, maintaining significant ownership in the venture, stands to benefit substantially if federal policy enhances cryptocurrency values, according to Connolly.
Furthermore, Connolly noted Trump's involvement with $TRUMP, a meme-based cryptocurrency generating considerable revenue through trading fees. Reports indicate Trump-affiliated entities have collected approximately $100 million from the token, which critics describe as his "most lucrative get-rich scheme yet."
Beyond ethical concerns, Connolly emphasized that Trump implemented the Bitcoin reserve plan without seeking congressional input or authorization. The lawmaker argued such an initiative, potentially impacting financial markets and federal monetary policy, requires thorough legislative examination.
As opposition intensifies, the Treasury Department has yet to issue public comment regarding implementation of Trump's controversial executive order.
