In a strong criticism of President Donald Trump’s recent financial policy, Democratic Representative Gerald E. Connolly has urged the US Treasury Department to immediately stop efforts to create a strategic cryptocurrency reserve. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, expressed concerns about what he sees as a clear conflict of interest, suggesting that the initiative seems intended to benefit Trump and his financial supporters rather than the American public at large.
His concerns were formalized in a letter sent on March 13 to Treasury Secretary Scott Bessent.
Connolly Challenges Trump’s Crypto Reserve
The controversy arises from Trump’s executive order signed earlier in March, which outlines the establishment of a federal Bitcoin reserve funded by approximately 200,000 Bitcoin already held by the government. The order also creates the US Digital Asset Stockpile, tasked with managing seized digital assets such as Ethereum, XRP, Solana, and Cardano. While the administration claims this move is meant to bolster the nation’s leadership in digital financial technology, Connolly argues that it is a misguided policy that could destabilize the economy and disproportionately benefit Trump’s private business interests.
Central to Connolly’s objections is Trump’s financial interest in the World Liberty Financial Initiative (WLFI). He cautioned that Trump’s personal investment in the company poses an alarming conflict of interest, as any government policy that increases cryptocurrency values would directly enhance Trump’s business profits. Furthermore, Connolly criticized Trump’s controversial involvement in the memecoin Official Trump (TRUMP), which some describe as a speculative scheme designed for profit, claiming that Trump and his allies stand to benefit from its price volatility.
Connolly also raised concerns about the lack of congressional authorization for the cryptocurrency reserve, pointing out issues with transparency and accountability in federal financial policy. A Federal Reserve official even labeled the cryptocurrency reserve plan as “the dumbest idea” ever proposed. Connolly has called on the Treasury Department to cease all efforts related to the strategic cryptocurrency reserve and requested a complete briefing on the issue by March 27. As opposition grows, the debate over Trump’s cryptocurrency policies is likely to become more heated, with lawmakers and financial experts continuing to assess the implications of a government-backed digital asset reserve.
Crypto Market in Turmoil
After Trump’s March 6 executive order to establish a strategic Bitcoin reserve, crypto markets experienced a sharp decline. Bitcoin, for instance, fell from over $93,400 to a low of $77,234 in less than a week. Although the price has since partially recovered to $83,176, investor sentiment remains unstable due to ongoing macroeconomic uncertainties. Altcoins like Ethereum, XRP, Solana, and Cardano also saw significant losses, registering double-digit declines following the announcement.
Twitter: The debate over Trump’s cryptocurrency policies heats up as Rep. Connolly urges the Treasury to halt plans for a strategic crypto reserve, citing conflicts of interest and lack of transparency. #Trump #Cryptocurrency
