A Democrat lawmaker has opposed US President Donald Trump’s plan to extend the federal government’s Bitcoin holdings by making a strategic reserve.
House Rep. Gerald E. Connolly of Virginia urged the US Department of the Treasury to halt the proposed Bitcoin reserve, suggesting that Trump has a battle of curiosity in pushing for it.
Lawmaker: Stop BTC Reserve
Connolly wrote a letter to US Department of Treasury Secretary Scott Bessent urging the Secretary to “cease all attempts” that push for the institution of a strategic Bitcoin reserve, claiming that it’ll solely enrich Trump and his allies.
“The creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers,” Connolly mentioned. “I urge you to cease all plans to create a strategic cryptocurrency reserve.”
The Virginia lawmaker criticized the cryptocurrency proposal as a result of solely Trump and his donors will profit from it.
Rep. Connolly urges U.S. Treasury to scrap plans for strategic crypto reserve
Virginia Rep. Gerry Connolly despatched a letter to U.S. Treasury Secretary Scott Bessent on March 13, urging the division to halt plans for establishing a strategic crypto reserve. According to a press…
— CoinNess Global (@CoinnessGL) March 14, 2025
Major Crypto Holders
Connolly mentioned that Trump, his household, and his closest allies are homeowners of cryptocurrencies, citing that the President’s household owned The Trump Organization, which maintains “significant ownership in World Liberty Financial.”
The lawmaker described it as a cryptocurrency enterprise that “aspires to be a sort of digital asset bank, where customers will be encouraged to borrow, lend and invest in digital coins” with even the President claiming World Liberty Financial as “the future of finance.”
He added that the President’s sons, Eric Trump and Donald Trump Jr., have advocated a number of cryptocurrencies, declaring the connection between the Trump household and cryptocurrencies.
The Democrat legislator talked about that the American President even launched a brand new meme coin in January known as TRUMP, saying, “Entities related to President Trump have reportedly made as much as $100 million in trading fees alone for this venture, which has been called his “most lucrative get-rich scheme yet.”
He famous {that a} crypto strategic reserve has “no discernible benefit to the American people.”
Unsound Fiscal Policy?
Connolly argued that the Bitcoin reserve is an “unsound fiscal policy” as a result of the choice of profitable currencies can be carried out by means of social media, including that it’ll solely waste “taxpayer dollars on a plan that one federal reserve official described as ‘the dumbest idea’ ever.”
“The United States has historically, through acts of Congress, created reserves of certain commodities of strategic value, such as petroleum, particularly during times of economic crisis. However, no strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market,” the lawmaker mentioned.
He described the Bitcoin reserve as “nothing more than a highly speculative taxpayer-backed hedge,” saying that if crypto crashes, “the State will deploy this fund to rescue it.”
Featured picture from The Independent, chart from TradingView
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