5 hours ago
Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, urged the US Treasury Department to wantonness plans to found a strategical Bitcoin reserve and the integer plus stockpile.
In a missive to Treasury Secretary Scott Bessent, Connolly condemned the effort arsenic fiscally irresponsible and politically motivated. He warned that the inaugural would service nary wide nationalist payment portion importantly enriching President Donald Trump and his allies.
Trump’s enforcement order
Connolly’s concerns stem from Trump’s March 6 executive order establishing the Strategic Bitcoin Reserve and US Digital Asset Stockpile, which builds connected a broader January 23 directive, “Strengthening American Leadership successful Digital Financial Technology.”
The inaugural would presumption the national authorities arsenic a large holder of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Trump has called the determination a mode to cement US dominance successful integer assets.
Connolly noted Trump’s crisp alteration successful stance connected crypto, highlighting that helium had antecedently dismissed integer assets arsenic a “scam” during his archetypal term.
However, his medication is present preparing to allocate national funds to the assemblage — an attack Connolly criticized arsenic an effort to manipulate fiscal markets for governmental and idiosyncratic gain.
He argued that the determination amounts to picking winners among integer currencies and creating artificial request for assets that Trump has fiscal vulnerability to.
Conflicts of Interest
The Ranking Member outlined respective imaginable conflicts of interest, including Trump’s reported involvement successful World Liberty Financial, a integer plus steadfast that aims to relation arsenic a crypto-based lending and concern platform.
Connolly warned that authorities purchases of crypto could straight payment Trump’s fiscal holdings, peculiarly if the medication prioritizes assets that align with his backstage investments.
He besides pointed to Trump’s engagement successful the $TRUMP memecoin, which has surged successful worth based connected speculation surrounding his governmental statements.
He pointed to reports that entities linked to Trump person generated implicit $100 cardinal successful trading fees from the token, raising concerns that the administration’s crypto initiatives could further thrust fiscal speculation tied to the president.
Lack of Congressional oversight
Connolly besides criticized the medication for bypassing Congress successful its propulsion to make the reserve, arguing that Trump had not sought legislative authorization nor engaged successful consultation with lawmakers astir the reserve’s imaginable risks oregon benefits.
He warned that without legislature oversight, the inaugural could go a instrumentality for governmental power alternatively than a morganatic fiscal strategy.
He besides referenced skepticism from fiscal experts, citing a Federal Reserve authoritative who reportedly described the program arsenic “the dumbest idea” ever.
Connolly urged the Treasury Department to instantly halt each plans related to the strategical crypto reserve. He requested a afloat briefing for House Oversight Committee unit by March 27 and sought clarity connected the reserve’s ineligible justification.
He besides requested clarity regarding the process for acquiring and managing the assets, the imaginable interaction connected crypto markets, and immoderate fiscal ties betwixt the White House and integer plus firms.
The Treasury Department has not yet responded to Connolly’s request. His missive signals increasing absorption from legislature Democrats, who are progressively scrutinizing Trump’s expanding engagement successful the integer plus industry.
The station Democrat lawmaker calls connected Treasury to wantonness Trump’s Bitcoin reserve plans appeared archetypal connected CryptoSlate.
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