A U.S. lawmaker is urging the Treasury Department to shut down the Trump administration’s proposed crypto reserves, calling them a waste of taxpayer money and a potential conflict of interest.
In a letter to Treasury Secretary Scott Bessent, Representative Gerald E. Connolly criticized the Strategic Bitcoin Reserve and Digital Asset Stockpile, arguing that they offer no real benefits to the American people and could serve private financial interests over public good.
Connolly Slams Bitcoin Reserve as Risky and Unnecessary
On March 13, Connolly formally called on the Treasury Department to cease all efforts to create a federal cryptocurrency reserve, stating that Bitcoin’s high volatility makes it an unsuitable asset for government holdings.
Too Risky for Government Reserves – Connolly argued that investing in cryptocurrency is unnecessary and too speculative, making it an unstable foundation for federal reserves.
A Safety Net for Crypto Investors? – He warned that the plan could shield Bitcoin investors from losses at the expense of taxpayers.
Lack of Congressional Approval – Connolly also pointed out that Trump’s administration pushed forward the plan without approval from Congress, raising concerns about transparency and oversight.
Trump’s Crypto Ties Under Scrutiny
The lawmaker further questioned whether Trump’s personal financial interests played a role in his push for a federal crypto reserve.
Ties to World Liberty Financial – Connolly cited the Trump Organization’s connections to World Liberty Financial, a crypto investment platform.
TRUMP Memecoin Controversy – He also pointed to Trump’s involvement in the TRUMP token, a political memecoin. Critics claim it’s a cash grab, alleging that Trump-affiliated groups have profited over $100 million in trading fees.
“Some have called this Trump’s most profitable scheme yet,” Connolly remarked, signaling concerns about ethical conflicts.
White House Defends Crypto Stockpile Plan
Despite backlash from Democratic lawmakers, the Trump administration maintains that the Digital Asset Stockpile is designed to hold confiscated crypto from criminal cases, ensuring it remains budget-neutral and does not require taxpayer funding.
Officials claim the Strategic Bitcoin Reserve is structured in a way that would not involve direct government purchases but rather utilize seized digital assets for long-term financial strategy.
Ongoing Push for Transparency from Treasury
Connolly has demanded that Treasury Secretary Bessent release documents outlining the administration’s Bitcoin reserve strategy. His request includes:
- Details on crypto-related financial interests within the Treasury Department.A disclosure of any financial ties between the Presidential Working Group on
- Digital Assets and private crypto firms—including Elon Musk’s involvement.
- Clarification on the specific assets held in both the Bitcoin Reserve and Digital Asset Stockpile.
The Strategic Bitcoin Reserve is set to focus solely on Bitcoin, while the Digital Asset Stockpile is expected to hold a range of assets, including Ethereum, XRP, Solana, and Cardano.
As lawmakers demand greater transparency, the future of Trump’s crypto initiative remains uncertain, with growing concerns over potential risks and ethical conflicts.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.