[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"news-aggregator-trump-should-scrap-bitcoin-res2840195949b-f8e1-705d-b2b2-bd151c684b05":3},{"id":4,"timestamp":5,"title":6,"content":7,"link":8,"preview":9,"tags":10,"predictedTags":11,"showTags":12,"source":13,"reactions":14,"selfReactions":15,"logo":16,"sourceId":17,"sourceUserId":18,"asset":19,"tagsCategories":20,"totalComments":21,"lang":22,"unique_views_count":23},"trump-should-scrap-bitcoin-res2840195949b-f8e1-705d-b2b2-bd151c684b05","1741953626000","Trump should scrap Bitcoin reserve for ‘enriching president and donors,’ lawmaker says","\u003Cp>It’s been called “the dumbest idea ever.” \u003C/p>\u003Cp>It was so bad, Federal Reserve officials almost kicked people out of the room for suggesting it, Perianne Boring, the CEO of The Digital Chamber, \u003Ca href=\"https://www.youtube.com/watch?v=z73ZNjx6j6A\">said in an interview\u003C/a> on YouTube.\u003C/p>\u003Cp>But that hasn’t stopped President Donald Trump from pushing ahead with plans to build a US crypto reserve even as \u003Ca href=\"https://www.dlnews.com/articles/people-culture/inside-the-trump-family-crypto-empire/\">his family’s digital assets businesses\u003C/a> are poised to benefit from the move.\u003C/p>\u003Cp>With the long-desired reserve failing to stem \u003Ca href=\"https://www.dlnews.com/articles/markets/investors-debate-if-btc-is-digital-gold/\">a plunge in crypto prices\u003C/a>, lawmakers are now rounding on the initiative as having “\u003Ca href=\"https://oversightdemocrats.house.gov/sites/evo-subsites/democrats-oversight.house.gov/files/evo-media-document/2025-03-13-gec-to-treasury-re-crypto-reserve.pdf\">no discernible benefit\u003C/a>” for the public.\u003C/p>‘Extreme financial risk’\u003Cp>“I urge you to cease all attempts to create the strategic cryptocurrency reserve,” Representative Gerry Connolly, the top Democrat on the House Oversight Committee, said in a five-page letter to Treasury Secretary Scott Bessent.\u003C/p>\u003Cp>“Such a reserve provided no discernible benefit to the American people but would significantly enrich the president and his donors.”\u003C/p>\u003Cp>Connolly also warned that the reserve would “artificially prop up certain digital assets while exposing taxpayers to extreme financial risk.”\u003C/p>\u003Cp>On March 6, Trump issued an executive order outlining the \u003Ca href=\"https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/\">Strategic Bitcoin Reserve\u003C/a> and US Digital Asset Stockpile, \u003Ca href=\"https://www.dlnews.com/articles/markets/trump-signs-bitcoin-strategic-reserve-executive-order/\">a plan\u003C/a> to consolidate the government’s seized crypto holdings. \u003C/p>\u003Cp>The order directs agencies to transfer all forfeited Bitcoin into a government-controlled reserve and allows for additional Bitcoin acquisitions — but only if they are “\u003Ca href=\"https://x.com/DavidSacks/status/1896482883424211188\">budget-neutral\u003C/a>” and don’t impose costs on taxpayers.\u003C/p>Stockpile\u003Cp>For other cryptocurrencies — including Ethereum, Solana, XRP, and Cardano — the administration would not purchase new assets but instead store existing holdings in a government-managed Digital Asset Stockpile. \u003C/p>\u003Cp>Connolly, who represents a district in northern Virginia, is sceptical the administration will refrain from tapping taxpayer funds to support the reserves.\u003C/p>\u003Cp>“At no point has the president sought congressional authorization to create this reserve,” Connolly said. \u003C/p>\u003Cp>Moreover, Connolly focuses on Trump’s personal financial interests in crypto, a development that has \u003Ca href=\"https://www.dlnews.com/articles/markets/trump-memecoin-decried-as-radioactive-for-crypto-as-it-soars/\">drawn fire\u003C/a> from many in the crypto industry. \u003C/p>\u003Cp>His family and business associates have deep ties to the industry, most notably through \u003Ca href=\"https://www.dlnews.com/articles/markets/sui-jumps-as-trump-backed-defi-project-plans-to-buy-tokens/\">World Liberty Financial\u003C/a>, a crypto venture the Trump Organization holds a significant stake in.\u003C/p>\u003Cp>The company, described as a “digital asset bank”, allows users to borrow, lend, and invest in cryptocurrencies.\u003C/p>Memecoin\u003Cp>If the Trump administration does follow through with a strategic crypto reserve, it could legitimise and drive up the value of these assets — directly benefiting Trump and his donors and financial partners.\u003C/p>\u003Cp>Another potential conflict comes from the president’s self-branded TRUMP memecoin, which generated over \u003Ca href=\"https://www.reuters.com/markets/currencies/trumps-meme-coin-made-nearly-100-million-trading-fees-small-traders-lost-money-2025-02-03/\">$100 million\u003C/a> in trading fees in its first month.\u003C/p>\u003Cp>Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at \u003Ca href=\"https://kbaird@dlnews.com/\">kbaird@dlnews.com\u003C/a>.\u003C/p>","https://www.dlnews.com/articles/regulation/scrap-bitcoin-reserve-that-enriches-trump-taxpayer-risk/","https://www.dlnews.com/resizer/v2/XU5VJ4PJSNCKFBIEP75CCBZK2Y.jpg?smart=true&auth=d9a0a91dc1ddb951f833244fe5440f6b2076677be13a0f606333f840f5aa711f&width=1200&height=630","[]","[\"Cardano\",\"ADA\",\"Bitcoin\",\"BTC\",\"Reserve\",\"RSV\"]","[{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/ADA.png\",\"name\":\"ADA\"},{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/BTC.png\",\"name\":\"BTC\"},{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/RSV.png\",\"name\":\"RSV\"}]","284",[],[],"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/news-feeds/sources/dl-news.png","DL News",null,"","[\"Crypto\"]","0","EN","1"]