Lawmaker Opposes Bitcoin Reserve Initiative
A Democratic representative has voiced strong objections to President Donald Trump’s initiative to expand the government’s Bitcoin holdings by establishing a strategic reserve. House Representative Gerald E. Connolly from Virginia has called on the U.S. Department of the Treasury to abandon the proposed Bitcoin reserve, arguing that Trump is acting out of self-interest in promoting this plan.
Call to Abandon Cryptocurrency Reserve
Connolly addressed a letter to Treasury Secretary Scott Bessent, urging him to “halt all efforts” regarding the creation of a strategic Bitcoin reserve. He contended that this move would serve only to benefit Trump and his affiliates at the cost of American taxpayers. “The establishment of a strategic cryptocurrency reserve is set to enrich the President and his close associates while burdening the American public,” Connolly stated emphatically. He reiterated his demand to stop any plans surrounding the cryptocurrency reserve.
Connections to Major Cryptocurrency Holders
The Virginia representative pointed out that Trump, along with his family and close associates, holds significant investments in cryptocurrencies. He referenced the President’s family business, The Trump Organization, which reportedly has considerable stakes in World Liberty Financial, a crypto venture aiming to operate as a digital asset bank where users can borrow, lend, and invest in cryptocurrencies. Connolly noted that the President himself has touted World Liberty Financial as a groundbreaking financial model. Additionally, he highlighted that Trump’s sons, Eric and Donald Jr., have supported various cryptocurrencies, showcasing the family’s ties to the crypto industry.
Controversial Cryptocurrency Ventures
Recently, the Democratic lawmaker mentioned that Trump introduced a new meme coin called TRUMP in January. He claimed that entities associated with the President may have earned as much as $100 million in trading fees from this initiative, labeling it as his “most profitable get-rich scheme to date.” Connolly criticized the idea of a strategic cryptocurrency reserve, asserting that it offers “no clear advantage for the American populace.”
Concerns Over Fiscal Responsibility
Connolly described the idea of a Bitcoin reserve as an “unwise fiscal policy,” highlighting that the process of selecting favored cryptocurrencies would be influenced by social media trends. He warned that this could lead to a waste of taxpayer funds on a scheme that one Federal Reserve official has labeled as “the dumbest idea” ever conceived. Historically, the United States has established reserves for strategic commodities, such as oil, especially during economic crises. However, Connolly emphasized that there is no compelling reason to invest in the unpredictable and speculative cryptocurrency market. He characterized the proposed Bitcoin reserve as “a highly speculative taxpayer-backed hedge” and cautioned that if the cryptocurrency market were to collapse, taxpayers would be responsible for the fallout.
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