Gerald Connolly, a senior member of the U.S. House of Representatives Oversight Committee, is urging an immediate stop to President Donald Trump’s proposed Bitcoin reserve initiative. In a letter directed to the U.S. Treasury, Connolly raised alarms about potential conflicts of interest stemming from Trump’s plan, which he believes could negatively impact American taxpayers without congressional consent.
What Are the Conflicts of Interest?
Connolly highlighted concerns regarding Trump’s cryptocurrency ventures, particularly citing World Liberty Financial—an initiative he endorsed that has seen its value drop dramatically from around $380 million to $76 million. The WLFI token is still on the market, raising eyebrows over its viability.
How Does Trump’s Bitcoin Reserve Work?
In addition, Connolly pointed to Trump’s memecoin projects, including TRUMP and MELANIA, which debuted just before Trump’s presidency. He has requested clarity from the Treasury about the safeguards in place to prevent conflicts of interest related to these ventures, with a response expected by March 27.
Last week, Trump initiated plans for a strategic Bitcoin reserve, purportedly to utilize seized Bitcoin from criminal investigations. Initially announced on Truth Social, Trump suggested that other confiscated cryptocurrencies would also be converted into Bitcoin, leading to some confusion regarding the reserve’s composition.
– Key concerns include:
– Potential conflicts of interest in Trump’s crypto projects.
– Significant losses for World Liberty Financial.
– Required clarity from the Treasury on conflict safeguards.
– Initiation of a Bitcoin reserve using seized assets.
The unfolding situation signifies growing scrutiny around the administration’s cryptocurrency initiatives, raising questions about the implications for stakeholders and taxpayers. As discussions continue, many await clarifications on the strategies and their potential impact on the economic landscape.
