Democrat Urges Treasury To Block Trump's Bitcoin Reserve, Blasts 'Get Rich Quick Scheme'

A Virginia Democrat is pressuring the U.S. Treasury Department to halt plans to establish a strategic Bitcoin reserve after President Donald Trump ordered it to do so through an executive order, saying there were "glaring conflicts of interest" to be noted.

Rep. Gerald Connolly, a top Democrat of the House Committee on Oversight and Government Reform, said Trump did not even consult Congress before announcing the reserve.

Connolly Slams 'Trump's New Get Rich Quick Scheme'

In a press release Thursday, the Committee's ranking member revealed he wrote a letter to Treasury Secretary Scott Bessent regarding "Trump's new get rich quick scheme" that he said will have "no discernible benefit to the American people."

He pointed out that at no point did Trump seek "congressional authorization" before he came up with the executive order that laid out plans on how the BTC reserve should be created.

Connolly Raises Issue With the 'Need' For a $BTC Reserve

The Democratic lawmaker urged Bessent to cease activities around the creation of a strategic Bitcoin reserve on the following grounds:

• Is there a need for an SBR? – Connolly acknowledged that the United States has historically created reserves for certain commodities of strategic value "through Acts of Congress," but "no strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market."
• Who will benefit from it? – According to Connolly, a Bitcoin reserve will not benefit Americans, but it will benefit Trump, his family, and his close allies who "hold stakes in cryptocurrency ventures," insisting that the reserve will only "enrich" Trump at the expense of American taxpayers.
• Didn't Trump call $BTC a "scam"? – Connolly also mentioned that time when Trump referred to Bitcoin as a likely "scam," suggesting that the president may have had different motives for his change of heart.

Challenging Trump's Bitcoin Reserve

In his reasoning for urging the Treasury to not move forward with the establishment of an SBR, Connolly does make some significant points, especially on whom the reserve will benefit in the end.

He cited Tolani Senior Professor of Trade Policy at Cornell University, who said a strategic Bitcoin reserve would be "great for current Bitcoin holders and equally certainly be a bad deal for taxpayers."

It is also true that many of Trump's close associates, including his two sons, are involved with crypto and some cabinet members are known for their pro-crypto views.

The issue of congressional authority may also be challenged by other Democrats and lawmakers who believe Congress should have a say in the matter.

Trump did order the Treasury to come up with "budget-neutral strategies" on how the government will acquire more Bitcoin and such strategies must not be at the cost of taxpayers.

The president has yet to comment on Connolly's latest move.