Key Takeaways:
- Lawmaker Opposition: Rep. Gerald E. Connolly urges the Treasury to block Trump’s proposed Bitcoin reserve, citing conflicts of interest and lack of public benefit.
- White House Defense: The administration claims the reserve will use confiscated crypto and operate without taxpayer funding, despite criticism.
- Regulatory Scrutiny: Connolly demands transparency on financial interests and potential conflicts, questioning Trump’s ties to crypto platforms and the TRUMP token.
A Democratic lawmaker, Representative Gerald E. Connolly of Michigan, has urged the U.S. Treasury to block the Trump administration’s efforts to establish a cryptocurrency reserve.
In a letter to Treasury Secretary Scott Bessent, Connolly criticized the plan, arguing it lacks public benefit and primarily serves to enrich Trump and his political donors.
🚨 Trump’s Strategic Bitcoin Reserve is facing pushback—should the U.S. embrace crypto at this scale?
— Bitcoin.com News (@BTCTN) March 14, 2025
Congressman Connolly is urging the Treasury to reconsider, arguing the plan benefits Trump’s allies while raising legal and fiscal concerns. Meanwhile, supporters say it…
He warned that the administration’s selective cryptocurrency investments amount to “unsound fiscal policy” and could put taxpayer funds at risk.
Connolly also raised concerns that the initiative might act as a government-backed bailout for Bitcoin speculators.
Despite opposition, the White House defended the initiative, stating that the Strategic Bitcoin Reserve would be funded through confiscated cryptocurrency from legal cases and would not rely on taxpayer money.
Connolly, however, accused Trump of bypassing Congress and questioned potential conflicts of interest, citing Trump’s ties to the crypto platform World Liberty Financial and the Official Trump (TRUMP) memecoin.
Connolly’s concerns align with previous Democratic opposition to Trump’s crypto involvement, including Representative Maxine Waters’ criticism of the TRUMP token.
He has requested Treasury documents related to the reserve’s creation and financial disclosures from administration officials.
With strong political resistance, Trump’s crypto reserve plans may face significant regulatory challenges.
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