Democratic Lawmakers Pressure U.S. Treasury to Urgently Terminate Cryptocurrency Reserve Program

Table of Contents

• Democrats Oppose Cryptocurrency Strategic Reserve
• Trump’s Bitcoin Reserve and Digital Asset Stockpile
• Conflict of Interest in Trump’s Policies

Democrats Oppose Cryptocurrency Strategic Reserve

Gerald Connolly, a Democratic Congressman from Virginia and member of the U.S. House Committee on Oversight and Government Reform, has urged the U.S. Department of the Treasury to stop the establishment of a cryptocurrency strategic reserve pushed by President Trump. Connolly sent a letter to the Treasury on Thursday, accusing Trump of having a “clear conflict of interest” in promoting the reserve plan and criticizing him for not consulting Congress or “seeking congressional authorization” to establish the reserve.

“Establishing a strategic cryptocurrency reserve would benefit the President and his associates at the expense of American taxpayers. I urge you to immediately cease all plans for the establishment of a strategic cryptocurrency reserve and request that you provide a briefing to the staff of the Committee on Oversight and Government Reform.”

The Treasury Department has not yet commented on this matter.

Trump’s Bitcoin Reserve and Digital Asset Stockpile

Last week, Trump signed an executive order directing the government to establish a Bitcoin strategic reserve and a digital asset stockpile. According to Trump’s executive order, the Bitcoin strategic reserve will consist of Bitcoin held by the U.S. Department of the Treasury, primarily derived from criminal or civil asset forfeiture. In contrast, the digital asset stockpile will include non-Bitcoin digital assets (such as other cryptocurrencies) confiscated by the government. The executive order stipulates that the government will not purchase these assets additionally and may convert other cryptocurrencies in the stockpile (such as Ethereum) into Bitcoin for long-term holding purposes.

Conflict of Interest in Trump’s Policies

Connolly also emphasized the potential conflicts of interest surrounding Trump and certain cryptocurrency projects. He pointed out that a cryptocurrency project supported by Trump, “World Liberty Financial (WLFI),” launched last year, holding cryptocurrencies valued at approximately $380 million at that time. However, due to market declines, this value has now dropped to $76 million, and the project continues to sell its WLFI tokens. Additionally, Connolly mentioned the meme coin of the same name launched by Trump and his wife Melania, which has also drawn attention due to its market performance. Finally, Connolly requested that the Treasury provide steps taken by the Trump administration to address potential conflicts of interest, as well as any safeguards currently in place, and asked for a response by March 27.