A Democratic lawmaker has recently called on the US Treasury to halt its plans of creating a strategic cryptocurrency reserve in the country. Representative Gerald E. Connolly of Michigan has criticized the proposed reserve, stating that it would not benefit the American people and would instead enrich President Donald Trump and his donors.

In a letter to Treasury Secretary Scott Bessent, Connolly expressed concerns about the conflicts of interest between Trump and the reserve, as well as the lack of consultation with Congress and potential waste of taxpayer dollars. He also pointed out that the Federal Reserve has described the idea as “the dumbest ever.”

The proposed reserve, which has been referred to as both the Strategic Bitcoin Reserve and the Digital Asset Stockpile, has faced criticism for its potential to favor certain cryptocurrencies over others and for its lack of transparency.

Connolly also raised concerns about Trump’s ownership of the crypto platform World Liberty Financial and the Official Trump (TRUMP) memecoin, which he referred to as a “money grab” that has allowed Trump-linked entities to profit from trading fees.

The Democrat’s letter also questioned whether the Presidential Working Group on Digital Asset Markets, which Bessent serves on, has reviewed financial disclosures from administration officials, including Elon Musk.

The Strategic Bitcoin Reserve would initially use cryptocurrency forfeited in federal criminal or civil cases, while the Digital Asset Stockpile would consist of other cryptocurrencies such as XRP, Solana, Cardano, and Ether.

Overall, Connolly’s letter highlights the concerns and controversies surrounding the proposed cryptocurrency reserve and calls for more transparency and accountability in its creation and management.