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A high Democrat urged the US Treasury Division to halt the establishing of a Strategic Bitcoin Reserve by President Donald Trump, saying it is going to ”enrich the President and his donors.”
“Such a reserve supplies no discernible profit to the American individuals,” wrote Home Consultant Gerald E. Connolly of Michigan in a March 13 letter to Treasury Secretary Scott Bessent.
He added that the plan, referred to as the ”dumbest concept ever” by a Federal Reserve official, would waste taxpayer {dollars}.
Trump’s Strategic Bitcoin Reserve Would Lead To “Unsound Fiscal Coverage”
Connolly additionally warned in his letter to the Treasury that Trump’s plan might result in “unsound fiscal coverage” as a result of it promotes sure cryptos over others on social media.
This, in line with the lawmaker, would profit no one apart from current Bitcoin and sure crypto holders, in addition to the President himself.
He additionally stated that no want has arisen that justifies an funding within the “unstable and speculative cryptocurrency market.”
Trump’s crypto reserve “would represent nothing greater than a extremely speculative taxpayer-backed hedge to supply bitcoin speculators the peace of mind 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 Home concerning the reserve.
Trump’s crypto and AI czar David Sacks stated just lately that the fund would solely comprise digital property which have been seized by the federal government. He additionally stated that the federal government is exploring cost-neutral methods to construct the reserve’s holdings that might not impression taxpayers.
Just some minutes in the past, President Trump signed an Government Order to determine a Strategic Bitcoin Reserve.
The Reserve will probably be capitalized with Bitcoin owned by the federal authorities that was forfeited as a part of felony or civil asset forfeiture proceedings. This implies it…
— David Sacks (@davidsacks47) March 7, 2025
Trump’s Proposed Strategic Bitcoin Reserve Presents A Battle Of Curiosity
Connolly additionally argued that Trump’s push for a US strategic crypto reserve presents a battle of curiosity, given the President’s household’s possession of World Liberty Monetary.
By introducing legal guidelines that favor digital property and pushing for the US crypto reserve, Connolly argued the President and his household stand to profit from the DeFi undertaking, which has substantial digital asset holdings and continues to purchase extra crypto.
DONALD TRUMP’S PROJECT JUST BOUGHT $100K OF $SEI
World Liberty Fi addresses despatched $25M USDC to a separate tackle final week.
This tackle simply bought $100K of SEI on Ethereum, and despatched it again to the principle WLF tackle. pic.twitter.com/wxVSyiFDSK
— Arkham (@arkham) March 13, 2025
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