Democrats React to Trump’s Crypto Reserve, Slams it as Corrupt and Useless

A Democratic lawmaker is urging the U.S. Treasury to block the Trump administration’s crypto reserve plans, calling them a waste of taxpayer money and a conflict of interest. Representative Gerald E. Connolly criticized the Strategic Bitcoin Reserve and Digital Asset Stockpile, questioning their benefits to the American people.

In a March 13 letter to Treasury Secretary Scott Bessent, Connolly called on the agency to “cease all attempts” to establish a federal cryptocurrency reserve. He argued that Bitcoin’s volatility makes it unsuitable for a government-backed stockpile and that the plan serves private interests over public good.

He argued that investing in cryptocurrency is unnecessary, calling it too volatile and speculative for a government reserve. Connolly warned that the plan would serve as a safety net for Bitcoin investors at taxpayers’ expense. He also pointed out that Trump’s administration advanced the proposal without seeking congressional approval.

Concerns Over Trump’s Business Ties and Crypto Holdings

Connolly questioned whether Trump’s financial interests influenced his push for a federal crypto reserve. He cited the Trump Organization’s ties to World Liberty Financial, a crypto platform, and its association with the Trump (TRUMP) memecoin.

The lawmaker labeled the TRUMP token a “cash grab,” alleging that Trump-affiliated groups have made over $100 million in trading fees. He further stated, “Some have called this Trump’s most profitable scheme yet.”

White House Defends Digital Asset Stockpile

Despite the criticism, the Trump administration maintains that the Digital Asset Stockpile will only contain confiscated crypto from criminal cases and that the Bitcoin reserve will operate under budget-neutral strategies. Officials have stated that taxpayer funds will not be used for purchases.

Representative Maxine Waters, a Democrat on the House Financial Services Committee, previously raised concerns about Trump’s involvement in crypto. She criticized the TRUMP memecoin, calling it a rug pull and an example of the worst side of the crypto industry.

Treasury Faces Pressure to Disclose Details

Connolly has demanded that Treasury Secretary Bessent provide documents detailing the administration’s actions on the Bitcoin reserve. He also requested a list of crypto-related companies the Treasury has financial interests in and questioned whether members of the Presidential Working Group on Digital Assets, including Elon Musk, disclosed any financial ties.

The Strategic Bitcoin Reserve would focus solely on Bitcoin, while the Digital Asset Stockpile would hold Ethereum, XRP, Solana, Cardano, and other cryptocurrencies. As discussions over its purpose and risks persist, lawmakers continue to push for greater transparency.