Treasury Urged to Reject Trump’s Strategic Bitcoin Reserve Plan
Top Democrat warns the initiative benefits Trump and his allies, not the American public
A leading congressional Democrat is pushing back against President Donald Trump’s proposal to create a strategic Bitcoin reserve, calling the plan fiscally reckless and fraught 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 abandon efforts to establish the cryptocurrency reserve.
Accusations of Self-Enrichment and Fiscal Mismanagement
Connolly argued that the initiative primarily serves to benefit Trump and his financial backers rather than the American public.
"Such a reserve provides no discernible benefit to the American people but would significantly enrich the President and his donors," he stated in his letter.
He also criticized the plan as reckless economic policy, warning that it could artificially boost Bitcoin’s value through government endorsement and social media hype while misusing taxpayer dollars. Connolly cited a Federal Reserve official who reportedly dismissed the idea as “the dumbest” proposal ever conceived.
The House Oversight Committee’s Democratic members reinforced Connolly’s stance, publicly urging the Treasury to halt the plan due to Trump’s potential conflicts of interest.
Trump’s Executive Order and Government’s Crypto Holdings
Earlier this month, Trump signed an executive order directing the federal government to establish a strategic Bitcoin reserve, initially funded with approximately 200,000 Bitcoin already in government possession.
The order also creates a separate entity, the US Digital Asset Stockpile, to manage other forfeited cryptocurrencies, including Ethereum, XRP, Solana, and Cardano. However, Treasury officials have indicated that the government will not actively expand the stockpile beyond assets seized through legal actions.
Lawmaker Flags Trump’s Personal Crypto Ties
Connolly’s letter also raises red flags about Trump’s deep financial involvement in the cryptocurrency industry, suggesting his business interests could shape federal policy for personal gain.
Specifically, he pointed to Trump’s stake in World Liberty Financial, a crypto-focused financial services company that aspires to become a digital asset bank. With a significant ownership position in the venture, Trump stands to profit if federal policies favor cryptocurrency.
Additionally, Connolly highlighted Trump’s connection to $TRUMP, a meme-based cryptocurrency that has reportedly generated significant revenue from trading fees. Some reports suggest Trump-affiliated entities have already pocketed up to $100 million from the token, with critics labeling it his "most lucrative get-rich scheme yet."
Beyond ethical concerns, Connolly slammed Trump for pushing the Bitcoin reserve plan without congressional approval. He argued that a policy with such vast implications for financial markets and federal monetary strategy should undergo a thorough legislative review.
Uncertain Future for Trump’s Bitcoin Reserve
As scrutiny intensifies, the Treasury Department has yet to issue a public statement on whether it will move forward with Trump’s controversial executive order. With congressional opposition mounting, the fate of the strategic Bitcoin reserve remains uncertain.
