One Democratic legislator called for the US Treasury to shelve plans set up by Trump to create a strategic cryptocurrency reserve. Representative Gerald E. Connolly wrote to Treasury Secretary Scott Bessent that the proposal would be of no use to the American people.
It said it would be to the benefit of President Donald Trump and his investors. It followed Trump’s recent disclosure about the government’s possession of a stash of cryptocurrency.
The program, established in an executive order called “Strengthening American Leadership in Digital Financial Technology,” included Bitcoin, Ethereum, XRP, Solana, and Cardano. A subsequent executive order established the Strategic Bitcoin Reserve. Connolly stated that Trump failed to consult with Congress before making both actions and objected to them.
Connolly alleges Trump’s crypto self-dealing
The congressman was concerned about Trump’s business interests in the crypto space. He mentioned the Trump Organization’s stake in World Liberty Financial, which is looking to become a bank for digital assets.
The company wants to make people lend, borrow, and invest in cryptocurrencies. This direct linkage to finances created a serious conflict of interest, according to Connolly. He also highlighted Trump’s involvement in a memecoin project that reportedly earned millions in trading fees.
Experts have labeled cryptocurrency, an online speculative token, as a risky investment. Trump’s entourage has reportedly made as much as $100 million in the business. Connolly labeled it one of Trump’s most profitable money-making ventures.
The legislator claimed the proposed crypto reserve would be for the interests of the private sector and not for the general good. According to him, the project would discriminate against certain digital currencies and waste taxpayer money.
Criticism over lack of transparency in reserve decision
One official at the Federal Reserve reportedly rejected the proposal, labeling it fiscally irresponsible and reckless. Connolly warned that the administration was putting personal gain above responsible economic policy.
He also criticized the transparency of the decision-making process. In his view, Trump’s exclusion of Congress in the creation of the reserve showed a lack of respect for congressional oversight. No effort, he added, was made to justify the need for such a reserve.
Connolly requested the Treasury Department to suspend all work on the project. Additionally, he requested a briefing for the Committee on Oversight and Government Reform. Connolly framed the issue in terms of government accountability and fiscal integrity.
Furthermore, he argued that tax revenues should never be used for personal economic benefits. Lawmakers called on the government to act immediately to prevent the misuse of state funds.
