The democratic legislator called on the US treasure to “cease all attempts” to create a strategic cryptocurrency reserve in the United States, citing conflicts of interest with US President Donald Trump and arguing that actions would not benefit the American nation.
Representative of the house Gerald E. Connolly from Michigan criticized “Cryptocurrency Reserve” in a letter from March 13 to the Secretary of the Treasury Scott Bessent, stating that he does not provide “no noticeable benefit to the American nation” and instead would significantly enrich the president and his donors.
Connolly, who did not distinguish between the strategic Bitcoin reserve and the digital assets of the asset, said that Trump’s plans are “unforgettable fiscal policy” because he chooses some cryptocurrencies through social media.
Connolly said that Trump’s administration plan would also waste taxpayers’ dollars to what the federal reserve described as “the stupidest idea.”
“There was no strategic need that would require investment for an unstable and speculative cryptocurrency market”, Connolly, a Democrat ranking in the Supervision and Government Reformation committee, he said In a letter.
“[It] It would not only constitute a highly speculative security supported by taxpayers to ensure that Bitcoin speculators assured that when the disaster arrives, the state will extend this fund to save it. “
Democrat Gerald E List Connolly to the Secretary of the Treasury Scott Bessent. Source: Committee for Supervision and Reform of Government Democrats
However, the White House said that the supply of digital assets would only maintain the cryptocurrency. At the same time, the Bitcoin (BTC) reserve will take over only through neutral strategies for the budget that will not affect taxpayers.
Connolly also said that Trump did not consult the Congress regarding the Bitcoin reserve plan, not to mention the Congress permit to create it.
Connolly also claimed that there were conflicts of interest between Trump’s presidential responsibilities and the property of the Trump organization regarding the World Liberty Financial cryptographic platform, in addition to the official Memecoin Trump (Trump).
Democrat called Trump token “grasping money”, which allowed entities related to Trump to earn commercial fees worth over $ 100 million.
Connolly added this called “the most lucrative rich program,” Connolly added.
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The representative of Maxine Waters, a democrat at the House Financial Services Committee, also criticized Memecoin Trump on January 20, referring to the carpet, while claiming that the premiere is “the worst crypto”.
Connolly asked Bessent to provide documents and communication related to the creation of the Bitcoin reserve and the full list of steps that Trump’s administration took to avoid a conflict of interest.
Connolly also asked for a list of companies in which the State Treasury has cryptographic financial interests. He also asked:
“Do the Presidential Working Group for digital assets on which you serve, which was left behind the task of developing a federal regulatory framework in terms of governing cryptocurrency reserve, reviewed financial disclosures by administrative officials, including Elon Musk?”
The Bitcoin strategic reserve will initially apply the cryptocurrency of loss in criminal or civil matters of federal matters. Meanwhile, the supply of digital assets will consist of cryptocurrencies other than Bitcoin, which may include XRP (XRP), Solana (SOL), Cardano (ADA) and Ether (ETH).
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