A Democratic congressman has spoken out against President Donald Trump’s proposal to create a strategic Bitcoin reserve, arguing that it could lead to Trump and his allies benefiting financially at the expense of taxpayers.
Rep. Gerald E. Connolly from Virginia sent a letter to Treasury Secretary Scott Bessent, urging the U.S. Department of Treasury to stop any plans for setting up a Bitcoin reserve. Connolly claimed that the plan would primarily benefit Trump and his inner circle, rather than the American people.
Lawmaker Says Bitcoin Reserve is a Conflict of Interest
Connolly argues that the proposed Bitcoin reserve is self-serving, suggesting that it would only benefit Trump and his family. He wrote that it would “enrich the President and his closest allies at the expense of American taxpayers” and urged the Treasury to “cease all attempts” to make it happen.
The congressman criticized the proposal, saying that it would only provide financial gain to Trump and his associates. He also pointed out that members of the Trump family, including Eric Trump and Donald Trump Jr., have shown support for cryptocurrencies in the past. Connolly referred to World Liberty Financial, a digital asset venture linked to the Trump family, and noted that they have even launched a new meme coin called TRUMP.
Trump’s Family and Crypto Ventures
Connolly highlighted that Trump and his family have substantial cryptocurrency holdings, with the Trump Organization having a stake in World Liberty Financial, a company that aims to be a “digital asset bank” offering services like borrowing, lending, and investing in cryptocurrencies.
The lawmaker also mentioned that Trump’s family has been actively involved in promoting cryptocurrencies, pointing to Eric and Donald Trump Jr. backing several digital assets. Additionally, Trump’s recent TRUMP meme coin has made headlines, with reports claiming that related ventures have earned as much as $100 million in trading fees.
A Risky and Unnecessary Plan
Rep. Connolly called the idea of a Bitcoin reserve an “unsound fiscal policy,” comparing it to fiscal reserves created by the U.S. in the past for commodities like oil during times of crisis. He argued that cryptocurrencies are too volatile and speculative to be considered a strategic asset for the country.
He also warned that investing in crypto could be a “taxpayer-backed hedge” — meaning that if the value of Bitcoin crashes, the U.S. government might have to use taxpayer money to bail it out.
The Bigger Picture: A Lack of Strategic Need
Connolly stressed that the U.S. has traditionally reserved certain strategic commodities during economic crises, but there’s no current need to invest in the unpredictable world of cryptocurrencies. He pointed out that no “strategic need” has been identified that would justify pouring money into Bitcoin, a highly speculative and volatile market.
In conclusion, the Bitcoin reserve proposal has sparked controversy. Rep. Connolly believes it’s a risky plan that would only serve to enrich Trump and his associates, while not offering any real benefits to the American people.
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