Democrat Lawmaker Urges US Treasury to Block Trump Administration’s Crypto Reserve Over Conflict of Interest

Jimmy Aki
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On March 13, Democrat House Representative Gerald E. Connolly sent a letter to the US Treasury, urging it to halt all efforts to establish a strategic crypto reserve. He argued that such a reserve could create a serious conflict of interest, as it would primarily benefit President Donald Trump and his financial supporters.

Crypto Reserve Poses a Risk to Fiscal Stability

According to the letter, House Representative Gerald E. Connolly pointed out that President Trump initially dismissed the idea of a crypto reserve as a scam.

Despite this, the administration is now pushing forward with a plan that Connolly believes would be fiscally irresponsible, as it would expose government-backed assets to extreme volatility.

He argued that tying public funds to a highly speculative market would destabilize long-term economic strategies and put taxpayers at unnecessary financial risk.

Connolly also expressed concerns that a crypto reserve would fuel artificial value increases driven by hype rather than real economic factors.

With social media and speculative trends dictating financial decisions, he warned that the government would effectively pick winners and losers in cryptocurrency, distorting free-market competition.

Lawmaker Labels Trump-Linked Organization and Meme Coin as Key Conflicts of Interest

Connolly further outlined potential conflicts of interest with President Trump’s involvement in the cryptocurrency industry.

He drew attention to Trump’s deep financial ties with World Liberty Financial, a crypto-based venture with several assets, including Ethereum ($ETH). Any appreciation in the value of these assets would provide the former president and his associates with substantial financial gains.

Additionally, Connolly addressed the controversial $TRUMP memecoin, a speculative digital asset tied to Trump’s brand. Often described as a joke cryptocurrency, its value fluctuates wildly based on public sentiment rather than any inherent utility.

The lawmaker called it one of Trump’s most lucrative financial schemes yet, raising concerns over how such ventures could influence national policy.

It could be recalled that Connolly’s letter comes in response to President Trump’s reinforced executive order on March 6, 2025, calling for the “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile.”

Shortly after Trump’s directive, Senator Cynthia Lummis reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act.

This legislation proposes the creation of a U.S. Strategic Bitcoin Reserve, adding a legislative push to the administration’s digital asset strategy.

At the same time, states have also begun exploring their crypto reserves. Texas, for example, has made the idea a central focus of its 2025 legislative agenda. At least five other states, including Arizona and Utah, have proposed similar strategies, seeing digital assets as a store of value and a potential hedge against inflation.

The debate over crypto reserves is far from settled, and with growing bipartisan concerns, the initiative’s future remains uncertain.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.