Democratic Deputy asks the Treasury to block Trump’s plans on the Bitcoin reserve

A member of the Democratic Party urged the United States Treasury Department to halt any attempt by the Trump administration to establish a strategic cryptocurrency reserve, denouncing a possible conflict of interest with the former president.  

The representative of the House Gerald E. Connolly, from Michigan, expressed strong concerns in a letter sent on March 13 to the Secretary of the Treasury, Scott Bessent. In the letter, Connolly argues that the creation of a cryptocurrency reserve would bring no tangible benefit to Americans, but would only enrich Trump and his financial supporters.  

Trump and the strategic crypto reserve: a harmful plan for taxpayers  

Connolly’s criticisms focus on the fiscal implications of this initiative. The deputy denounces that a potential strategic reserve based on Bitcoin and other cryptocurrencies would represent an imprudent allocation of public resources, favoring certain digital currencies over others through the filter of social media.  

Furthermore, it highlights how the Federal Reserve rejected the idea, calling it “the most stupid ever conceived”. Connolly states that there is no strategic necessity that justifies a government investment in a highly volatile and speculative market like that of cryptocurrencies.

“A public reserve of Bitcoin would be nothing more than speculation supported by taxpayers, ensuring Bitcoin traders that, in the event of a market crash, the State would step in to save them.”

The responses from the Casa Bianca  

The Trump administration responded to the criticisms by clarifying that the Digital Asset Stockpile will only store cryptocurrencies already confiscated in criminal or civil proceedings. Furthermore, it stated that the Bitcoin Reserve will be funded through budget-neutral strategies, without impacts on taxpayers.

However, Connolly accused the former president of having ignored Congress, proceeding without consulting or obtaining official authorization to establish the Bitcoin reserve.

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Trump and the conflitti di interesse  

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Another central point of the criticism concerns the possible conflicts of interest between Trump’s presidency and his private affairs. Connolly highlighted the link between Trump and World Liberty Financial, a cryptocurrency platform managed by the Trump Organization.  

The deputy also made accusations against Trump’s official memecoin $TRUMP, described as a “million-dollar scam” that has yielded entities linked to Trump over 100 million dollars in trading fees.  

According to Connolly, the token represents Trump’s largest personal enrichment scheme ever realized. Another Democratic representative, Maxine Waters, also criticized the project comparing it to a fraudulent scheme during a speech on January 20.  

Request for documents and transparency  

Connolly has asked Bessent to provide documents and communications related to the creation of the Bitcoin Reserve and a complete list of the measures taken by the Trump administration to avoid conflicts of interest.  

The deputy also requested a list of companies in which the Treasury holds financial interests related to cryptocurrencies. Among his inquiries is the question of whether the Presidential Working Group on Digital Asset Markets has examined the financial statements of senior administration officials, including that of the magnate Elon Musk.  

The structure of the Bitcoin Reserve  

According to the administration’s plans, the Strategic Bitcoin Reserve will initially be formed from cryptocurrencies confiscated in legal proceedings, while the Digital Asset Stockpile will include other digital coins such as XRP, Solana, Cardano and Ethereum.

However, many questions remain about the role of this reserve and the possible political and financial implications of such an accumulation of cryptocurrencies by the State.