U.S. Lawmaker Calls for Halt to Strategic Bitcoin Reserve

U.S. Representative Gerald Connolly has called on U.S. Treasury Secretary Scott Bessent to halt plans to establish a strategic Bitcoin reserve. Connolly, who serves as a ranking member of the Committee on Oversight and Government Reforms, expressed concerns that such a reserve would primarily benefit President Trump and his allies rather than American taxpayers.

In a letter to Bessent, Connolly argued that the creation of a strategic cryptocurrency reserve would enrich the President and his closest associates at the expense of taxpayers. He cited past reserves for commodities like petroleum, which were created by Congress to be used during economic crises, but noted that the volatile cryptocurrency market lacks similar strategic value.

Connolly highlighted several potential conflicts of interest, including the official TRUMP memecoin and the President’s family links to the DeFi platform World Liberity Financial. He also mentioned Elon Musk’s influence on key agencies like the Securities and Exchange Commission (SEC) and his past promotion of Dogecoin. Additionally, Connolly pointed out that President Trump’s AI and crypto czar, David Sacks, is still a partner at Craft Ventures, a digital asset investing firm.

Sacks has claimed to have sold his cryptocurrency prior to joining the Administration, but Connolly’s letter suggests otherwise. The White House has maintained that Sacks has divested from Craft Ventures and other crypto investments, but Connolly requested key documents related to the creation of the crypto reserves and financial disclosures from members of the Working Group on Digital Asset Markets to curb potential conflicts of interest.

Connolly’s call to action has sparked a debate about the role of cryptocurrency in the U.S. economy and the potential risks and benefits of creating a national reserve. The lawmaker’s stance is supported by other House Oversight Democrats, who have also urged the President to reconsider his plans, citing the lack of clear benefits to taxpayers and the potential for misuse of public funds.

Meanwhile, Senator Cynthia Lummis has re-introduced the Bitcoin Act to anchor the BTC reserves within a formal legal framework. This move aims to provide a structured approach to managing cryptocurrency reserves, addressing some of the concerns raised by Connolly and other lawmakers.

The debate over the strategic Bitcoin reserve highlights the complex interplay between political interests, financial transparency, and the evolving role of cryptocurrency in the national economy. As the discussion continues, it remains to be seen how the U.S. Treasury will respond to Connolly’s call for transparency and accountability in the management of public resources.