Democratic Lawmaker Challenges Trump’s Crypto Reserve Plan
A top Democrat in Congress is urging the U.S. Treasury Department to halt President Donald Trump’s plan for a strategic Bitcoin reserve, citing conflicts of interest and lack of congressional oversight.
Rep. Gerald Connolly, the leading Democrat on the House Committee on Oversight and Government Reform, sent a letter to the Treasury on Thursday, demanding a pause on all plans related to the Bitcoin reserve.
“The creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers,” Connolly stated.
He further criticized Trump for failing to consult Congress or seek legislative approval before moving forward with the executive order.
The Treasury Department has not yet responded to the request for comment.
Trump’s Bitcoin Reserve: What’s the Plan?
Last week, Trump signed an executive order to create a strategic Bitcoin reserve and a digital asset stockpile. While the terms “reserve” and “stockpile” have been used interchangeably, sources suggest key differences:
- The reserve will be backed by Bitcoin held by the Treasury, specifically from forfeited assets seized in criminal and civil cases.
- The stockpile will contain other digital assets (altcoins) seized by the government, which may be converted into Bitcoin over time.
- The U.S. government will not proactively acquire additional crypto beyond confiscated holdings.
Confusion Over Trump’s Crypto Strategy
Trump’s handling of the crypto reserve announcement has caused widespread confusion.
Before the executive order was issued, Trump posted on Truth Social that the reserve would include SOL, XRP, and ADA. However, he later clarified that the reserve would primarily focus on Bitcoin.
This miscommunication has fueled skepticism over the administration’s actual crypto strategy.
Conflicts of Interest? Trump’s Crypto Ties Under Scrutiny
- World Liberty Financial (WLFI), a Trump-backed crypto project, has seen its token value plummet from $380 million to $76 million amid a series of sales.
- TRUMP and MELANIA memecoins, launched just days before Trump’s January 20 inauguration, have also sparked ethical concerns.
Connolly has asked the Treasury to provide a detailed list of steps taken to prevent conflicts of interest and outline any safeguards in place. The lawmaker has set a March 27 deadline for a response.
With growing political tensions surrounding Trump’s crypto policies, the fate of the Bitcoin reserve remains uncertain as lawmakers push for greater oversight and transparency.
