Lawmaker Opposes Bitcoin Reserve Proposal
A Democratic congressman has voiced strong opposition to President Donald Trump’s initiative to bolster the government’s Bitcoin assets by establishing a strategic reserve. Representative Gerald E. Connolly from Virginia has urged the U.S. Treasury Department to abandon the proposed Bitcoin reserve, arguing that Trump has a personal conflict of interest that undermines the plan’s integrity.
Call to Halt Strategic Bitcoin Reserve
In a letter addressed to Treasury Secretary Scott Bessent, Connolly demanded that all efforts aimed at creating a strategic Bitcoin reserve be terminated, asserting that the initiative would primarily serve to benefit Trump and his associates. “The establishment of such a cryptocurrency reserve stands to enrich the President and his close companions while disadvantaging American taxpayers,” Connolly stated. He emphasized the need to abandon any plans for a strategic cryptocurrency reserve.
Concerns Over Major Crypto Stakeholders
Connolly pointed out that Trump, along with his family and close allies, holds significant investments in cryptocurrencies. He referenced the Trump Organization’s substantial stake in World Liberty Financial, a venture that aims to function as a digital asset bank, enabling customers to lend, borrow, and invest in cryptocurrencies. The President has even touted World Liberty Financial as a pioneering force in the financial sector. Connolly also highlighted that Trump’s sons, Eric and Donald Jr., have promoted various cryptocurrencies, indicating a familial connection to the crypto industry.
Criticism of Recent Crypto Ventures
The Democratic lawmaker noted that Trump recently launched a meme coin named TRUMP, claiming that entities associated with the President have generated around $100 million in trading fees from this venture, which he described as potentially Trump’s “most profitable get-rich scheme to date.” Connolly criticized the notion of a strategic crypto reserve for lacking any tangible benefits to the American populace.
Financial Policy Concerns Raised
Connolly labeled the proposed Bitcoin reserve as an “unsound fiscal policy,” suggesting that the choice of which cryptocurrencies to support would be dictated by social media trends. He criticized the plan as a waste of taxpayer money, referring to it as a concept deemed the “dumbest idea” by a federal reserve official. He pointed out that the U.S. has historically created reserves for commodities deemed essential, like oil, particularly during economic downturns, but argued that no such necessity exists for investing in the unpredictable and speculative cryptocurrency landscape. Connolly characterized the Bitcoin reserve as a “speculative taxpayer-backed hedge,” warning that if the cryptocurrency market were to collapse, taxpayers would ultimately be responsible for bailing it out.
