Rep. Gerald E. Connolly, the Ranking Member of the House Committee on Oversight and Government Reform, has urged the US Treasury to abandon plans to establish a strategic cryptocurrency reserve, citing conflicts of interest tied to President Donald Trump and his financial network.

In a letter addressed to Treasury Secretary Scott Bessent, Connolly criticized Trump’s March 6 executive order, which mandates the creation of a federal cryptocurrency reserve comprising Bitcoin, Ethereum, XRP, Solana, and Cardano. 

Connolly argued that the plan offers no discernible benefit to American taxpayers while potentially enriching the President and his donors.

Connolly’s letter raises concerns over President Trump’s personal and financial interests in cryptocurrency ventures. 

Specifically, he pointed to Trump’s ownership stake in World Liberty Financial, a company aiming to function as a digital asset bank. Additionally, Trump’s $TRUMP memecoin has reportedly generated up to $100 million in trading fees, a venture that some analysts have labeled as his most lucrative get-rich-quick scheme yet.

“The creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers,” Connolly wrote. “This initiative appears to be an unsound fiscal policy that picks winners among cryptocurrencies and could destabilize the digital asset market.”

Another key issue highlighted in Connolly’s letter is the lack of congressional consultation before issuing the executive orders. He stressed that, unlike strategic reserves for commodities such as petroleum, no urgent national security or economic crisis justifies a government-backed cryptocurrency stockpile. 

Furthermore, Connolly cited concerns that the initiative would provide state-backed assurance to an already volatile market, potentially bailing out crypto investors at taxpayer expense.

The letter also raises alarms over Elon Musk’s involvement in the administration’s digital asset policies. Musk, Trump’s largest campaign donor, reportedly holds significant cryptocurrency investments and exerts influence over regulatory agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Additionally, Connolly questioned the role of David Sacks, the administration’s crypto and artificial intelligence czar, who previously invested in digital asset funds. While Sacks claims to have divested from his holdings, he remains a partner at Craft Ventures, which still has crypto investments.

Connolly has requested that the Treasury Department provide a briefing to the Oversight Committee and submit detailed documentation regarding the strategic cryptocurrency reserve by March 27. 

Among the requests are all communications related to the reserve’s creation, a list of safeguards to prevent government officials from financially benefiting, details on how the administration selected the five cryptocurrencies included, and financial disclosure reviews for officials involved in the plan.

Connolly’s letter follows widespread skepticism over Trump’s cryptocurrency policies, with one Federal Reserve official describing the Bitcoin reserve proposal as “the dumbest idea ever.” Critics argue that the initiative is less about securing financial innovation and more about leveraging government resources for private gain.