Gerald Connolly, the senior Democratic member of the U.S. House of Representatives Oversight Committee, has called for the cessation of President Donald Trump’s proposed strategic Bitcoin 
$108,975 reserve initiative. In a letter to the U.S. Treasury Department, Connolly expressed concerns about serious conflicts of interest arising from Trump’s plan. He believes that attempting to implement a Bitcoin reserve without congressional approval could harm American taxpayers and has urged an immediate halt to the initiative, demanding Congress be informed on the matter.
Claims of Conflict of Interest in Trump’s Crypto Projects
Connolly pointed out that the cryptocurrency projects backed by President Trump are leading to conflicts of interest. One such project, World Liberty Financial, which Trump directly endorsed, was launched last year but has since seen its value plummet from approximately $380 million to just $76 million. Furthermore, the sale of the project’s WLFI coin is still ongoing.
Additionally, Connolly highlighted Trump’s memecoin projects, including the TRUMP memecoin and Melania Trump’s MELANIA memecoin, which were launched shortly before Trump’s inauguration.
Connolly has requested detailed information from the Treasury regarding the measures and security mechanisms implemented by the Trump administration to address conflicts of interest. The department is expected to respond to these inquiries by March 27.
Strategic Bitcoin Reserve Sparks Controversy
Last week, Trump signed a presidential order to establish a strategic Bitcoin reserve using confiscated BTC. This reserve is said to consist of Bitcoin seized from criminal or legal proceedings. Trump also indicated that other confiscated cryptocurrencies would be converted into Bitcoin for storage.
The reserve idea was initially shared by Trump on Truth Social, where he mentioned that cryptocurrencies like SOL, XRP, and ADA would be included. However, he later clarified that Bitcoin would also be part of the reserve, creating some confusion.
