Bitcoin Reserve Benefits Trump and Donors, Not the Nation — Says Democrat Lawmaker

A Democrat lawmaker is urging the U.S. Treasury to stop President Donald Trump’s plan to create a government-controlled Bitcoin reserve. The lawmaker, Representative Gerald E. Connolly from Michigan, believes this initiative would mainly benefit Trump and his supporters rather than the American public.

Lawmaker Opposes Donald Trump’s Bitcoin Reserve

In a letter sent to Treasury Secretary Scott Bessent on March 13, Connolly expressed strong opposition to the idea of a “cryptocurrency reserve.” He argued that there is no clear advantage for the country and claimed it could financially benefit Trump and his donors.

Connolly also criticized the way Trump’s administration is selecting certain cryptocurrencies, claiming it is being influenced by social media rather than economic strategy. He called the plan an “unsound fiscal policy” and pointed out that the Federal Reserve had dismissed it as “the dumbest idea ever.”

No Need for a Crypto Reserve, Lawmaker Says

Connolly argued that the U.S. does not have any urgent need for a cryptocurrency reserve. He warned that using taxpayer money to invest in a highly volatile market could lead to unnecessary risks. According to him, the reserve would serve as a financial safety net for Bitcoin investors in case of a market crash.

However, the White House has defended the plan. Officials stated that the Digital Asset Stockpile would only include cryptocurrencies seized from criminal activities. Meanwhile, the Bitcoin Reserve would acquire Bitcoin using budget-neutral strategies, meaning it would not require taxpayer funding.

Concerns Over Trump’s Business Interests

Connolly also accused Trump of failing to consult Congress before moving forward with the plan. He raised concerns about a conflict of interest, pointing out that Trump’s company, World Liberty Financial, is involved in cryptocurrency. He also criticized Trump’s personal cryptocurrency token, the TRUMP memecoin, calling it a “money grab.”

The lawmaker claimed that Trump and his associates have earned over $100 million in trading fees from the token. He referred to this as Trump’s “most lucrative get-rich scheme yet.” Other Democrats, such as Representative Maxine Waters, have also criticized the token, with Waters calling it an example of the “worst of crypto.”

Request for More Information on Bitcoin Reserve

Connolly has asked the Treasury to release documents related to the creation of the Bitcoin reserve. He also wants details about any companies the Treasury has financial interests in within the crypto industry. Additionally, he inquired whether officials, including Elon Musk, have disclosed any financial ties to cryptocurrency investments.

According to government sources, the Strategic Bitcoin Reserve will primarily consist of cryptocurrency seized in federal cases. The Digital Asset Stockpile, on the other hand, will contain other cryptocurrencies such as XRP, Solana (SOL), Cardano (ADA), and Ethereum (ETH).

As of now, the Treasury has not publicly responded to Connolly’s request.