tl;dr
Democratic Representative Gerald E. Connolly has urged the US Treasury Department to cease its efforts to establish a strategic cryptocurrency reserve, citing concerns of conflict of interest and potential enrichment of President Donald Trump and his financial backers. Connolly's objections stem fro...
Democratic Representative Gerald E. Connolly challenges President Trump's cryptocurrency reserve as a conflict of interest
Crypto market experiences turmoil following Trump's executive order on strategic Bitcoin reserve
Democratic Representative Gerald E. Connolly has urged the US Treasury Department to cease its efforts to establish a strategic cryptocurrency reserve, citing concerns of conflict of interest and potential enrichment of President Donald Trump and his financial backers. Connolly's objections stem from Trump's executive order to create a federal Bitcoin reserve and a separate entity to manage forfeited digital assets, which he believes could benefit Trump's personal business ventures. He also raised issues of transparency and accountability, emphasizing the lack of congressional authorization for the initiative. The controversy has led to a sharp downturn in crypto markets following the executive order, with Bitcoin and altcoins experiencing significant declines. As opposition grows, the debate over Trump's cryptocurrency policies is expected to intensify.
In a strong rebuke of President Donald Trump’s latest financial policy, Democratic Representative Gerald E. Connolly has called on the US Treasury Department to immediately halt efforts to establish a strategic cryptocurrency reserve. Connolly, who serves as the Ranking Member of the House Oversight and Government Reform Committee, raised concerns over what he described as a blatant conflict of interest, arguing that the initiative appears designed to enrich Trump and his financial backers rather than serve the broader American public. His formal request was outlined in a letter sent on March 13 to Treasury Secretary Scott Bessent.
CONNOLLY CHALLENGES TRUMP’S CRYPTO RESERVE The controversy stems from Trump’s executive order which was signed earlier in March. It details the creation of a federal Bitcoin reserve capitalized with approximately 200,000 Bitcoin already in the government’s possession. In addition, the order establishes the US Digital Asset Stockpile, a separate entity tasked with managing forfeited digital assets, including Ethereum, XRP, Solana, and Cardano. While the administration has stated that the reserve aims to strengthen the country’s leadership in digital financial technology, Connolly contends that the initiative is a misguided policy decision that could undermine economic stability while disproportionately benefiting the president’s personal business ventures.
CRYPTO MARKET IN TURMOIL Following Trump’s March 6 executive order establishing a strategic Bitcoin reserve, crypto markets experienced a sharp downturn. Bitcoin, for one, plummeted from over $93,400 to a low of $77,234 in a span of less than a week. While the price has since staged a partial recovery to $83,176, investor sentiment remains fragile as broader macroeconomic uncertainty continues to weigh on the market. Altcoins also suffered significant losses, with Ethereum, XRP, Solana, and Cardano posting double-digit declines in the aftermath of the announcement.