- Congressman Gerald E. Connolly has urged the U.S. Treasury to abandon Trump’s plan for a strategic cryptocurrency reserve, arguing that it lacks congressional oversight and primarily benefits Trump and his allies.
- He raised concerns about potential financial misconduct and executive overreach, demanding a Treasury briefing by March 27.
A heated debate has erupted over former President Donald Trump’s plan to establish a strategic cryptocurrency reserve. Congressman Gerald E. Connolly is leading the charge against this initiative, urging the U.S. Department of Treasury to scrap the proposal. He claims that the plan serves Trump’s financial interests rather than benefiting the American people.
A Plan Under Fire
Trump recently signed an executive order to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” positioning the U.S. as a leader in digital asset strategy. The reserve would include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, Connolly argues that this move lacks congressional consultation and raises significant ethical and financial concerns.
In a letter addressed to Treasury Secretary Scott Bessent, Connolly criticized the plan, calling it a reckless scheme that would enrich Trump and his allies at the expense of taxpayers. He expressed strong opposition, stating:
“Such a reserve provides no discernible benefit to the American people but would significantly enrich the President and his donors.”
Concerns Over Executive Overreach
One of Connolly’s primary objections is the apparent lack of congressional oversight. The lawmaker emphasized that Trump did not seek approval from Congress before launching the initiative, raising alarms about executive overreach. Additionally, he pointed out that a Federal Reserve official has labeled the plan as “the dumbest idea” ever proposed.
Connolly also questioned the legality of the initiative, demanding that the Treasury cease all efforts to implement the reserve. His concerns are further fueled by Trump’s personal involvement in cryptocurrency ventures. The former president reportedly holds a significant stake in World Liberty Financial, a crypto firm with ambitions to function as a digital asset bank. Furthermore, Trump’s association with the TRUMP memecoin, which has allegedly generated $100 million in trading fees, raises ethical questions about potential self-enrichment.
Connolly has requested a briefing from the Treasury and expects a response by March 27. The outcome of this debate could have significant implications for the role of cryptocurrency in the U.S. economy and the broader financial system. Whether the Treasury will heed Connolly’s call remains to be seen, but the controversy surrounding the strategic cryptocurrency reserve is unlikely to fade anytime soon.
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