Key Notes
- Lawmaker Connolly accused the Trump administration of favoring specific cryptocurrencies and failing to consult Congress on the initiative.
- Connolly raised concerns over potential conflicts of interest, highlighting Trump’s ties to the DeFi platform World Liberty Financial and the Official TRUMP (TRUMP) meme coin.
- As gold nears a record high of $3,000 per ounce, economist Peter Schiff urged the US government to focus on gold reserves instead .
While US President Donald Trump and his team have been working on building a strategic Bitcoin BTC $84 460 24h volatility: 5.2% Market cap: $1.68 T Vol. 24h: $28.00 B reserve, a Democrat lawmaker has requested the US Treasury to “cease all attempts” of building a cryptocurrency reserve for America.
In a March 13 letter to the US Treasury Secretary Scott Bessent, House Representative Gerald E. Connolly of Michigan stated that building a crypto reserve is of “no benefit to the American people”. He said that such a plan would instead only benefit the US President and his donors.
Democrat Connolly also criticized the Trump administration for the lack of distinction between the Strategic Bitcoin Reserve and the Digital Asset Stockpile. Calling the plan as “unsound fiscal policy”, the lawmaker accused the Trump team of favouring only certain cryptocurrencies based on their social media influence.
The Democrat argued that the initiative would squander taxpayer money, referencing the Federal Reserve’s characterization of the plan as “the dumbest idea ever”. In his letter, Connolly wrote :
“No strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market. [It] would constitute nothing more than a highly speculative taxpayer-backed hedge to provide Bitcoin speculators the assurance that when the crash comes, the State will deploy this fund to rescue it.”
Did Donald Trump Consult the Congress on Passing the Bitcoin Reserve Bill?
Last week, US President Donald Trump signed the executive order for building a strategic Bitcoin reserve. The White House has already clarified that the Digital Asset Stockpile will consist solely of cryptocurrencies already forfeited. Meanwhile, the Bitcoin reserve will be built using budget-neutral strategies, ensuring no burden is placed on taxpayers.
House Representative Gerald E. Connolly also accused President Donald Trump of bypassing the Congress in his decision to establish the Bitcoin reserve. The Democrat has requested Treasury Secretary Bessent to provide documentation and communications related to the reserve’s creation. He also demanded details on measures taken to prevent conflicts of interest.
The lawmaker has further raised concerns over the potential conflict of interest while pointing out Trump’s ties to World Liberty Financial, a Trump-owned DeFi platform. Connolly also questioned the launch of the Official TRUMP (TRUMP) meme coin, calling it a “money grab,” alleging it has generated over $100 million in trading fees for Trump-linked entities. “This could be Trump’s most lucrative get-rich scheme yet,” Connolly claimed.
Peter Schiff: Dump BTC Reserve and Build Gold Reserves Instead
Economist and gold advocate Peter Schiff has called out the US government’s focus on Bitcoin amid a notable rise in gold prices. Taking to social media, Schiff highlighted that while stocks and Bitcoin faced declines, gold surged by $40, nearing a record high of $3,000 per ounce.
He criticized the US government for prioritizing its Bitcoin reserve strategy, suggesting a focus on gold instead. Schiff questioned:
“Why doesn’t the US government just add to its existing gold reserve instead of wasting time figuring out how to add to its Bitcoin reserve?”
Following the decision of BTC reserve, the Bitcoin price has remained under selling pressure and is currently flirting towards $82,000 levels. Despite the cooling US inflation data for February, the bulls have failed to make a strong rally on the upside.
Some market analysts believe that BTC price can further correct to $75,000 and lower if it fails to hold above $80,000. Amid the Trump tariff war, the crypto market has lost over $800 billion in the last two months.
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