In a strong rebuke of President Donald Trumps latest financial policy, Democratic Representative Gerald E. Connolly has called on the US Treasury Department to immediately halt efforts to establish a strategic cryptocurrency reserve.

Connolly, who serves as the Ranking Member of the House Oversight and Government Reform Committee, raised concerns over what he described as a blatant conflict of interest, arguing that the initiative appears designed to enrich Trump and his financial backers rather than serve the broader American public.

His formal request was outlined in a letter sent on March 13 to Treasury Secretary Scott Bessent.

Connolly Challenges Trumps Crypto Reserve

The controversy stems from Trumps executive order which was signed earlier in March. It details the creation of a federal Bitcoin reserve capitalized with approximately 200,000 Bitcoin already in the governments possession. In addition, the order establishes the US Digital Asset Stockpile, a separate entity tasked with managing forfeited digital assets, including Ethereum, XRP, Solana, and Cardano.

While the administration has stated that the reserve aims to strengthen the countrys leadership in digital financial technology, Connolly contends that the initiative is a misguided policy decision that could undermine economic stability while disproportionately benefiting the presidents personal business ventures.

Central to Connollys objections is Trumps financial interest in the World Liberty Financial Initiative (WLFI). He warned that Trumps personal stake in the company presents an alarming conflict of interest, as any government policy that boosts cryptocurrency values would directly enhance the profitability of Trumps business interests.

Additionally, the lawmaker pointed to Trumps controversial involvement in the memecoin Official Trump (TRUMP). Critics have described the token as a speculative money-making scheme, while Connolly said that Trump and his allies stand to gain financially from its volatility.

Adding to the scrutiny, Connolly took issue with the manner in which the cryptocurrency reserve is being implemented and highlighted that the US President has not sought congressional authorization for the initiative. By sidestepping legislative input, the administrations approach raises concerns over transparency and accountability in the handling of federal financial policy. Connollys letter cited a Federal Reserve official who dismissed the cryptocurrency reserve plan as the dumbest idea ever proposed.

Connolly has urged the Treasury Department to abandon all efforts to move forward with the strategic cryptocurrency reserve and requested a full briefing on the matter by March 27. As opposition mounts, the debate over Trumps cryptocurrency policies is expected to intensify. Meanwhile, lawmakers and financial experts continue weighing the implications of a federal government-backed digital asset reserve.

Crypto Market in Turmoil

Following Trumps March 6 executive order establishing a strategic Bitcoin reserve, crypto markets experienced a sharp downturn. Bitcoin, for one, plummeted from over $93,400 to a low of $77,234 in a span of less than a week. While the price has since staged a partial recovery to $83,176, investor sentiment remains fragile as broader macroeconomic uncertainty continues to weigh on the market.

Altcoins also suffered significant losses, with Ethereum, XRP, Solana, and Cardano posting double-digit declines in the aftermath of the announcement.