A Democratic representative is urging the Treasury to halt the presidential initiative over concerns about conflicts of interest and waste of public funds.
Representative Gerald Connolly, a Democrat on the House Committee on Oversight and Government Reform, has formally requested that the U.S. Department of the Treasury stop plans for the creation of a strategic reserve of Bitcoin and other cryptocurrencies promoted by President Donald Trump.
In a letter sent to the Treasury on March 13, the Virginia Democrat highlighted “clear conflicts of interest” and warned of the risks to taxpayer money in Trump’s initiative. He emphasized that the President had neither consulted Congress nor sought the necessary legislative authorization to proceed with the creation of the reserve. In his request, Connolly stated:
“The creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers. I urge you to cease all plans to create a strategic cryptocurrency reserve, and request that you provide a briefing to the staff of the Committee on Oversight and Government Reform.”
Connolly also pointed to potential conflicts of interest concerning Trump’s involvement in specific crypto projects, such as World Liberty Financial. The Democratic representative also referenced a memecoin bearing the President’s name. Trump, in fact, launched the TRUMP memecoin just days before the January 20 presidential inauguration.
In his letter, Connolly requested that the Treasury provide a list of measures taken by the Trump administration to address conflicts of interest and any safeguards put in place, demanding a response by March 27.
Despite Connolly’s concerns, the executive order clearly differentiates Bitcoin from other digital assets. The strategic Bitcoin reserve would be established using bitcoins already in the Treasury Department’s possession, confiscated through criminal or civil proceedings. Meanwhile, the “stockpile” of other digital assets would consist of non-Bitcoin cryptocurrencies, also acquired through seizures. According to the executive order, the Bitcoin reserve could be increased through “zero-cost” acquisition strategies, while the stockpile of alternative digital assets would only be liquidated, preventing the government from making additional purchases.
