According to a letter sent to Treasury Secretary Scott Bessent, Michigan Democrat lawmaker Gerald Connolly wants the Trump administration prevented from proceeding with the Bitcoin Reserve proposal.
Citing what he believes is a conflict of interest with US President Donald Trump, the Democrat lawmaker told the Treasury Department that the proposed stockpile would not benefit the American people. The Congressman argued that the Bitcoin Reserve proposal provided “no discernible benefit to the American people” and would instead significantly enrich the President and his donors.
Tokens Selected Via Social Media
In his hard-hitting letter, Congressman Gerald Connolly failed to differentiate between the proposed Strategic Bitcoin Reserve and the Digital Asset Stockpile suggested by the US President. According to him, the Bitcoin Reserve proposal constitutes unsound fiscal policy since it selected some cryptocurrencies over others based on social media. According to Connolly, the idea proposed by the White House was “the dumbest idea ever” to employ taxpayer dollars. In his letter, he said:
“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.”
Conflict of Interest with Trump’s Official Duties
In his letter, Democrat Gerald Connolly asked to brief the House Committee on Oversight and Government Reform and requested a formal response by March 27. His sentiments highlight the potential for a looming legal and political battle that could determine the trajectory of the Bitcoin Reserve proposal and the future of President Donald Trump’s crypto initiatives.
Further citing what he calls the lack of congressional consultation while questioning the legality of the Bitcoin Reserve Proposal, Representative Gerald Connolly also alleged there would be a conflict of interest between President Donald Trump’s official duties at the White House and his alleged ownership of crypto platform World Liberty Financial, in addition to the Official Trump (TRUMP) meme coin.
Cease All Plans to Create a Reserve
Connolly told the Treasury:
“Creating 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.
US President Donald Trump recently signed an executive order establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” keeping with his campaign promise of making America the crypto capital of the world. Writing on his Truth Social page, Trump revealed that the reserve would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
Conclusion
As pressure and criticism from people who share Michigan Lawmaker Gerald Connolly’s sentiments begin to mount, it will be interesting to hear the Treasury Department’s response. Ongoing scrutiny from lawmakers and other regulatory bodies could halt or delay plans to implement Trump’s Bitcoin Reserve Strategy fully.
Frequently Asked Questions (FAQs)
What is a Strategic Bitcoin Reserve bill?
A Strategic Bitcoin Reserve bill is legislation enabling a federal or state government to hold Bitcoin as a reserve asset in its Treasury.
What are the stages a bill goes through before becoming law?’
State bills follow a standardized process through the legislature. Introduction: Bills can be introduced in the House or Senate chamber or through several stages. They only become law once they are signed by the governor or President in the case of a federal bill.
What do critics of a strategic Bitcoin reserve allege?
Most critics of the Bitcoin Reserve Proposal have expressed concerns about the asset’s volatility, lack of intrinsic value, the potential for manipulation, and the risks of tying national financial stability to a speculative market.
What’s the point of a Bitcoin reserve?
Proponents of the move say the reserve would act as a hedge against financial instability in a hypothetical future where cryptocurrencies replace regular money issued by central banks.
Appendix: Glossary of Key Terms
Bitcoin: A cryptocurrency designed to act as money and a form of payment outside the control of any one person, group, or entity
Strategic Bitcoin Reserve: A reserve asset funded by the United States Treasury’s forfeited bitcoin
Digital Asset Stockpile: A secure account for orderly and strategic management of the United States’ other digital asset holdings
Legislative Bill: A proposed law presented to a legislative body like a parliament or congress for consideration and potential enactment.
References
Read More: Why Lawmaker Gerald Connolly Rejects Strategic Bitcoin Reserve Proposal“>Why Lawmaker Gerald Connolly Rejects Strategic Bitcoin Reserve Proposal
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