Trump’s Bitcoin Reserve Sparks Controversy: Lawmakers Sound the Alarm

Washington D.C. – A political firestorm is brewing over President Donald Trump’s proposed Bitcoin [BTC] reserve, with U.S. Representative Gerald Connolly leading the charge against what he deems a potential abuse of power. His warning? The crypto reserve won’t benefit taxpayers—it will enrich Trump and his allies.

Connolly Urges Treasury to Halt BTC Reserve Plans

In a letter addressed to Treasury Secretary Scott Bessent, Connolly did not mince words:

“The creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers. I urge you to cease all plans to create a strategic cryptocurrency reserve.”

His concerns extend beyond financial prudence—he sees a dangerous conflict of interest.

Bitcoin Reserves: A Power Play or a Strategic Move?

As a ranking member of the Committee on Oversight and Government Reforms (COGR), Connolly emphasized that previous strategic reserves—like petroleum—served national interests. But Bitcoin? Highly volatile, largely speculative, and untested as a strategic asset.

Key concerns raised:

• Lack of transparency around how the reserve would be managed.
• Connections between Trump and major crypto players, including his family’s ties to World Liberty Financial, a DeFi platform.
• Potential influence from Elon Musk, given his past promotion of Dogecoin (DOGE) and connections to regulatory bodies like the Securities and Exchange Commission (SEC).

The Sacks Controversy: More Than Meets the Eye?

One of the most explosive claims revolves around David Sacks, Trump’s appointed AI and Crypto Czar. Connolly highlighted Sacks’ past ties to Craft Ventures, a firm that has invested in multiple crypto assets, including BTC, ETH, XRP, SOL, and ADA.

Though the White House insists Sacks has divested from his holdings, questions about ethics remain.

What Happens Next?

To ensure full transparency, Connolly has demanded financial disclosures from members of the Working Group on Digital Asset Markets. Meanwhile, Senator Cynthia Lummis has reintroduced the Bitcoin Act, seeking to formalize how BTC reserves would be managed.

The Big Question: Does Crypto Belong in Government Reserves?

This debate isn’t just about Trump—it’s about the role of cryptocurrency in national financial strategy. If Bitcoin is adopted into U.S. reserves, will it serve taxpayers or the elite?

This battle is just beginning. One thing is certain: The crypto world is watching.