Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, is taking a stand against the US Treasury Department’s plans to establish a strategic Bitcoin reserve and digital asset stockpile. In a letter to Treasury Secretary Scott Bessent, Connolly criticized the initiative as fiscally irresponsible and politically motivated, warning that it would only serve to enrich President Donald Trump and his allies without providing any clear public benefit.
The controversy surrounds Trump’s executive order on March 6, which outlined the creation of the Strategic Bitcoin Reserve and US Digital Asset Stockpile. This move, which builds on a previous directive from January 23 aimed at strengthening American leadership in digital financial technology, would see the federal government become a major holder of various cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano. Trump has framed this initiative as a way to solidify US dominance in the digital assets space.
Connolly raised concerns about Trump’s sudden shift in attitude towards crypto, noting that the president had previously labeled digital assets as a “scam” during his first term. The congressman pointed out that the administration’s decision to allocate federal funds to the sector now seems like an attempt to manipulate financial markets for political and personal gain.
One of the key issues highlighted by Connolly is the potential conflicts of interest surrounding Trump’s involvement in the digital asset industry. The congressman pointed to Trump’s reported stake in World Liberty Financial, a crypto firm focused on lending and investment, as well as his ties to the $TRUMP memecoin, which has seen a surge in value based on political speculation. Connolly warned that government purchases of crypto assets could directly benefit Trump’s financial holdings, especially if the administration prioritizes assets aligned with his private investments.
Furthermore, Connolly criticized the lack of congressional oversight in the creation of the strategic crypto reserve, noting that Trump had not sought legislative authorization or engaged with lawmakers about the initiative’s risks and benefits. The congressman highlighted skepticism from financial experts, including a Federal Reserve official who reportedly called the plan “the dumbest idea ever.”
In his letter to the Treasury Department, Connolly called for an immediate halt to all plans related to the strategic crypto reserve. He requested a full briefing for House Oversight Committee staff by March 27 to address concerns about the initiative’s legal justification, acquisition and management of assets, impact on crypto markets, and potential financial ties between the White House and digital asset firms.
The Treasury Department has yet to respond to Connolly’s request, but his letter signals a growing opposition from congressional Democrats towards Trump’s expanding involvement in the digital asset industry. As the debate continues, it remains to be seen how the administration will navigate these concerns and whether the strategic crypto reserve will move forward as planned.