Connolly said the Trump administration’s plan would also waste taxpayer dollars on what the Federal Reserve described as “the dumbest idea ever.”“No strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market,” Connolly, the ranking Democrat on the House committee on oversight and government reform, said in the letter. “[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.”Democrat Gerald E Connolly’s letter to Treasury Secretary Scott Bessent.
Related: Bitcoin reserve may end up a ‘potent political weapon’ — Arthur HayesRepresentative Maxine Waters, a Democrat on the House Financial Services Committee, also criticized Trump’s memecoin on Jan.20, referring to a rug pull while claiming the launch represented the “worst of crypto.”Connolly has asked Bessent to provide documents and communications related to the creation of a Bitcoin reserve and a complete list of steps the Trump administration has taken to avoid a conflict of interest.
Connolly, who didn’t discern between the Strategic Bitcoin Reserve and the Digital Asset Stockpile, said Trump’s plans would constitute “unsound fiscal policy” because it chooses certain cryptocurrencies over others via social media.
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Author / Journalist: Cointelegraph by Brayden Lindrea
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