A Democrat lawmaker has called on the US Treasury to 'cease all attempts” to create a strategic crypto reserve

This has been called Trump's “most lucrative get-rich scheme yet,” Connolly added.

A Democrat lawmaker has urged the US Treasury to “cease all attempts” at creating a strategic crypto reserve in the United States.

House Representative Gerald E. Connolly of Michigan stated that a cryptocurrency stockpile would provide “no discernible benefit to the American people.”

However, the president and his donors would instead reap a significant windfall from such a venture, according to the Democrat.

Connolly, who didn’t discern between the Strategic Bitcoin Reserve and the Digital Asset Stockpile, said Trump’s plans would constitute “unsound fiscal policy.”

This is because it chooses certain cryptocurrencies over others via social media.

Connolly said the Trump administration’s plan would also waste taxpayer dollars on what the Federal Reserve described as “the dumbest idea ever.”

“No strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market,” Connolly, the ranking Democrat on the House committee on oversight and government reform, said in the letter.

Democrat Gerald E Connolly’s letter to Treasury Secretary Scott Bessent. Source: US Committee on Oversight and Government Reform Democrats

The Biden administration has said that the Digital Asset Stockpile will only hold onto cryptocurrency already forfeited.

Meanwhile, the Bitcoin (BTC) reserve will only make acquisitions through budget-neutral strategies that won’t impact taxpayers.

Connolly also said that Trump failed to consult with Congress over the Bitcoin reserve plan, let alone obtain congressional authorization to create it.

Connolly also alleged there were conflicts of interest between Trump’s presidential duties and the Trump Organization’s ownership of the crypto platform World Liberty Financial, in addition to the Official Trump (TRUMP) memecoin.

The Democrat referred to the TRUMP token as a “money grab” that has allowed Trump-linked entities to cash in on over $100 million worth of trading fees.

This has been called Trump’s “most lucrative get-rich scheme yet,” Connolly added.

Related: Bitcoin reserve may end up a ‘potent political weapon’ — Arthur Hayes

House Financial Services Committee Democrat Maxine Waters also chided Trump’s memecoin on Jan. 20, referring to a rug pull while claiming the launch represented the “worst of crypto.”

Connolly has asked Bessent to provide documents and communications related to the creation of a Bitcoin reserve and a complete list of steps the Trump administration has taken to avoid a conflict of interest.

Connolly also asked for a list of companies in which the Treasury has crypto-related financial interests. He also asked:

The Strategic Bitcoin Reserve will initially use cryptocurrency forfeited in federal criminal or civil cases. Meanwhile, the Digital Asset Stockpile will consist of cryptocurrencies other than Bitcoin, which could include XRP (XRP), Solana (SOL), Cardano (ADA) and Ether (ETH).

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