14.03.2025 16:52
Democratic Congressman Gerald E. Connolly criticized President Donald Trump's cryptocurrency reserve plan, stating that this initiative would harm the American people and only enrich certain circles. Connolly argues that this plan would waste taxpayers' money.
Democratic Congressman Gerald E. Connolly strongly criticized President Trump's cryptocurrency reserve plan. Connolly emphasized that this initiative by the Trump administration would only enrich certain interest groups and would not provide any benefit to the American people, urging the Treasury Secretary to halt it by sending a letter.
Trump Administration's Cryptocurrency Reserve Plan Moves Forward Without Congressional Approval
Democratic Congressman from Michigan, Gerald E. Connolly, called on U.S. Treasury Secretary Scott Bessent to stop the Trump administration's plans to create a strategic cryptocurrency reserve in a letter he sent. In his letter dated March 13, Connolly argued that the plan would "not provide any noticeable benefit to the American people" and would instead significantly enrich President Trump and his donors.
As the most senior Democratic member of the House Oversight and Government Reform Committee, Connolly criticized both the Strategic Bitcoin Reserve and the Digital Asset Stock without making a distinction between the two. The Congressman argued that Trump's preference for certain cryptocurrencies over others on social media would create "unsound financial policy."
In his letter, Connolly stated, "No strategic need has arisen that would require investment in the volatile and speculative cryptocurrency market." He also noted that such a plan was described by the Federal Reserve as "the dumbest idea ever," adding, "This would be nothing more than an extremely speculative taxpayer-backed protection that assures Bitcoin speculators that the government would use these funds to bail them out in the event of a potential collapse."
The White House, in its statement on the matter, indicated that the Digital Asset Stock would only hold cryptocurrencies that have already been lost. It also claimed that the Bitcoin reserve would only make purchases through budget-neutral strategies that would not affect taxpayers.
The Democratic Congressman asserted that Trump did not obtain authorization from Congress to create the cryptocurrency reserve and did not even consult Congress on this matter. Connolly also claimed that there were conflicts of interest between Trump's presidential duties and his ownership of the Official Trump (TRUMP) memecoin and the cryptocurrency platform World Liberty Financial.
The Michigan representative described the TRUMP token in his letter as a "money grab" scheme that allows organizations linked to Trump to profit from over $100 million in transaction fees. Connolly added that this was considered Trump's "most lucrative plan to get rich ever."