A Democratic legislator has expressed opposition to President Donald Trump’s initiative to enhance the government’s Bitcoin holdings by establishing a strategic reserve.
Rep. Gerald E. Connolly from Virginia urged the U.S. Department of the Treasury to stop the proposed Bitcoin reserve, indicating that Trump has a conflict of interest in advocating for it.
Lawmaker: Halt BTC Reserve
Connolly addressed a letter to U.S. Treasury Secretary Scott Bessent, urging the Secretary to “terminate all efforts” related to creating a strategic Bitcoin reserve, claiming that it will only serve to enrich Trump and his associates.
“The establishment of a strategic cryptocurrency reserve is set to benefit the President and his closest allies at the detriment of American taxpayers,” Connolly stated. “I implore you to halt all initiatives aimed at creating a strategic cryptocurrency reserve.”
The Virginia legislator criticized the cryptocurrency initiative, asserting that only Trump and his benefactors would reap the rewards.
Rep. Connolly calls on U.S. Treasury to cancel plans for a strategic crypto reserve
Virginia Representative Gerry Connolly sent a letter to U.S. Treasury Secretary Scott Bessent on March 13, requesting the department to cease steps toward establishing a strategic crypto reserve. According to a press…
— CoinNess Global (@CoinnessGL) March 14, 2025
Key Cryptocurrency Holders
Connolly alleged that Trump, his family, and his close associates own cryptocurrencies, noting that the President’s family runs The Trump Organization, which has “substantial stakes in World Liberty Financial.”
He described this as a cryptocurrency venture aiming to be a type of digital asset bank, encouraging customers to borrow, lend, and invest in digital currencies, with the President asserting that World Liberty Financial represents “the future of finance.”
Connolly also observed that Trump’s sons, Eric Trump and Donald Trump Jr., have endorsed various cryptocurrencies, highlighting the family’s connection to the crypto space.
The Democratic lawmaker noted that the President even introduced a new meme coin named TRUMP earlier this year, stating, “Entities tied to President Trump have reportedly earned upwards of $100 million in trading fees alone from this venture, dubbed as his ‘most lucrative get-rich scheme yet.’”
He emphasized that a strategic crypto reserve has “no tangible advantage for the American public.”
Questionable Fiscal Policy?
Connolly characterized the Bitcoin reserve as an “unstable fiscal policy,” arguing that the choice of favorable currencies will be determined through social media and asserting that it will squander “taxpayer dollars on what one Federal Reserve official referred to as ‘the dumbest idea’ ever.”
“Historically, the United States has created reserves of pivotal commodities like petroleum through Congressional acts, especially during economic crises. However, no strategic necessity has arisen that would warrant investment in the unpredictable and speculative cryptocurrency market,” the legislator remarked.
He characterized the Bitcoin reserve as “simply a highly speculative taxpayer-supported hedge,” asserting that if the crypto market collapses, “the government will use this fund to bail it out.”
Featured image sourced from The Independent, chart by TradingView
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