A Democrat Lawmaker Is Urging the U.S. Treasury to Stop President Donald Trump’s Plan to Create a Government-Controlled Bitcoin Reserve

A Democrat lawmaker is urging the U.S. Treasury to stop President Donald Trump’s plan to create a government-controlled Bitcoin reserve.

A Democrat lawmaker is urging the U.S. Treasury to halt President Donald Trump’s initiative to establish a government-controlled Bitcoin reserve.

In a letter to Treasury Secretary Scott Bessent on March 13, Representative Gerald E. Connolly from Michigan expressed his vehement opposition to the plan, which he believes will benefit Trump and his supporters more than the American people.

“I urge you to reconsider this ill-advised venture and instead focus the Treasury’s resources on matters of pressing national interest,” Connolly concluded his letter.

The lawmaker expressed a lack of understanding for the "advantage to the country" of creating a "cryptocurrency reserve," asserting that it could instead be "a financial windfall for President Trump and his donors."

He further criticized the administration’s cryptocurrency selections as being influenced by social media trends rather than sound economic strategy.

"This administration's handling of cryptocurrency is a prime example of an unsound fiscal policy that will ultimately leave the American people worse off," Connolly wrote. "Indeed, the Federal Reserve reportedly dismissed the idea of a Bitcoin reserve as 'the dumbest idea ever.'"

Connolly highlighted the absence of any urgent need for the U.S. to hold a cryptocurrency reserve. He warned that using taxpayer money to invest in a highly volatile market carries significant risks.

According to Connolly, the reserve would act as a financial safety net for Bitcoin investors in the event of a market crash, a role that he believes the Treasury should not be assuming.

However, the White House has defended the plan. Officials stated that the Digital Asset Stockpile would only include cryptocurrencies seized from criminal activities.

Moreover, the Bitcoin Reserve would acquire BTC using budget-neutral strategies, meaning it would not require taxpayer funding.

Connolly also accused Trump of failing to consult Congress before moving forward with the plan. He raised concerns about a conflict of interest, pointing out that Trump's company, World Liberty Financial, is involved in cryptocurrency.

The lawmaker went on to criticize Trump's personal cryptocurrency token, the TRUMP memecoin, which he described as a "money grab." According to Connolly, Trump and his associates have earned over $100 million in trading fees from the token.

"This would make it Trump's most lucrative get-rich scheme yet—at the expense of the American people and the stability of the financial system," Connolly stated.

Other Democrats, such as Representative Maxine Waters, have also expressed criticism of the token. Back in February, Waters called it an example of the "worst of crypto."

Connolly has asked the Treasury to release documents related to the creation of the Bitcoin reserve. He also wants details about any companies the Treasury has financial interests in within the crypto industry.

Additionally, Connolly inquired whether officials, including Elon Musk, have disclosed any financial ties to cryptocurrency investments.