Trump's Bitcoin Strategic Reserve Plan in Jeopardy? Top Democrats Pressure Treasury Department!

TradingKey - The U.S. cryptocurrency strategic reserve plan faces criticism and opposition from top Democrats, but it is unlikely to pose a significant threat.  

On Thursday Gerald Connolly, the Democratic leader of the U.S. House Committee on Oversight and Government Reform, accused President Trump of having an "obvious conflict of interest" in establishing a cryptocurrency reserve and urged the Treasury Department to halt the plan.

Gerald Connolly stated, "President Trump did not consult Congress or seek congressional authorization to establish this reserve. It enriches the President and his closest allies at the expense of American taxpayers. I urge the cessation of all plans to create a strategic cryptocurrency reserve and request a briefing for the staff of the Oversight and Government Reform Committee."

Additionally, Connolly demanded that the Treasury Department provide a list of measures taken by the Trump administration to address conflicts of interest and any existing safeguards, with a response required by March 27.

Currently, neither Trump nor the Treasury Department has commented on the matter. However, Connolly's pressure appear to be unfounded, as Trump has no plans to use taxpayer funds to purchase Bitcoin or other cryptocurrencies. Instead, the plan involves converting previously confiscated crypto assets into reserve assets, making it unlikely to pose a threat to the initiative.

On the contrary, the U.S. Treasury Department is actively advancing the cryptocurrency reserve plan. According to sources, the Treasury Department met with executives from three crypto custody firms this week to discuss strategies for safeguarding the national strategic Bitcoin reserve. 

Anchorage Digital is one of the participating institutions, and its CEO, Nathan McCauley, stated, "Treasury officials inquired in detail about best practices for national Bitcoin reserves and digital asset custody, as well as how custody impacts stablecoins and market structure."