Summary
- Democratic Representative Connolly urges Treasury to halt Trump’s cryptocurrency reserve plan, citing concerns over “clear conflicts of interest” and potential misuse of taxpayer funds, highlighting the lack of Congressional consultation.
- Connolly points to Trump’s connections with crypto projects, like World Liberty Financial and a namesake memecoin, as specific examples fueling conflict of interest concerns, requesting transparency from the Treasury on safeguards implemented.
- The proposed plan differentiates between Bitcoin and other cryptocurrencies: the Bitcoin reserve would grow via seized assets only, while other cryptocurrencies would be stockpiled for potential liquidation, addressing some concerns within the executive order itself despite ongoing criticism.
A Democratic representative is urging the Treasury to halt the presidential initiative over concerns about conflicts of interest and waste of public funds.
Representative Gerald Connolly, a Democrat on the House Committee on Oversight and Government Reform, has formally requested that the U.S. Department of the Treasury stop plans for the creation of a strategic reserve of Bitcoin and other cryptocurrencies promoted by President Donald Trump.
In a letter sent to the Treasury on March 13, the Virginia Democrat highlighted “clear conflicts of interest” and warned of the risks to taxpayer money in Trump’s initiative.
He emphasized that the President had neither consulted Congress nor sought the necessary legislative authorization to proceed with the creation of the reserve. In his request, Connolly stated:
“The creation of a strategic cryptocurrency reserve is poised to enrich the president and his closest allies at the expense of American taxpayers.
I urge you to cease all plans to create a strategic cryptocurrency reserve, and request that you provide a briefing to the staff of the Committee on Oversight and Government Reform.”
Democratic Challenge to Trump Crypto Reserve Plan
Connolly also pointed to potential conflicts of interest concerning Trump’s involvement in specific crypto projects, such as World Liberty Financial. The Democratic representative also referenced a memecoin bearing the president’s name.
Trump, in fact, launched the TRUMP memecoin just days before the January 20 presidential inauguration.
In his letter, Connolly requested that the Treasury provide a list of measures taken by the Trump administration to address conflicts of interest and any safeguards put in place, demanding a response by March 27.
Despite Connolly’s concerns, the executive order clearly differentiates Bitcoin from other digital assets. The strategic Bitcoin reserve would be established using bitcoins already in the Treasury Department’s possession, confiscated through criminal or civil proceedings.
Meanwhile, the “stockpile” of other digital assets would consist of non-Bitcoin cryptocurrencies, also acquired through seizures.
According to the executive order, the Bitcoin reserve could be increased through “zero-cost” acquisition strategies, while the stockpile of alternative digital assets would only be liquidated, preventing the government from making additional purchases.
Also Read: Japanese lawmaker proposes a national Bitcoin reserve to promote adoption
Japanese lawmaker Satoshi Hamada has requested the government to establish a national Bitcoin reserve, a request similar to those made by MPs in Argentina, Russia, and other countries. Hamada cited initiatives in Brazil and the US where Treasury officials may maintain Bitcoin as a “strategic reserve asset.” He also suggested that the Japanese government consider converting a portion of its foreign exchange reserves into virtual currencies like Bitcoin. Hamada also mentioned that the incoming Trump administration will designate a crypto “czar” and similar initiatives are also in progress in Brazil. In the upcoming weeks, the government is expected to furnish Hamada with a written response, which it will likely post on its… [Read More]
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