He added that the plan, called the ”dumbest idea ever” by a Federal Reserve official, would waste taxpayer dollars.<\/p>\n
![\"Trump's](\"https:\/\/imageio.forbes.com\/specials-images\/imageserve\/67d0fc5e6655f6407946eb68\/President-Trump-Hosts-Crypto-Summit-At-The-White-House\/0x0.jpg?format=jpg&crop=3296,1852,x0,y0,safe&width=960\")
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Trump’s Strategic Bitcoin Reserve Would Lead To “Unsound Fiscal Policy”<\/span><\/h2>\nConnolly also warned in his letter to the Treasury that Trump’s plan could lead to “unsound fiscal policy” because it promotes certain cryptos over others on social media. <\/span><\/p>\nThis, according to the lawmaker, would benefit nobody other than existing Bitcoin and <\/span>certain crypto<\/span><\/a> holders, as well as the President himself.<\/span><\/p>\nHe also said that no need has arisen that justifies an investment in the “volatile and speculative cryptocurrency market.” <\/span><\/p>\nTrump’s crypto reserve “would constitute nothing more than a highly speculative taxpayer-backed hedge to provide <\/span>bitcoin<\/span><\/a> speculators the assurance that when the crash comes, the State will deploy this fund to rescue it,” he added.<\/span><\/p>\nConnolly’s arguments contradict statements made by the White House regarding the reserve. <\/span><\/p>\nTrump’s crypto and AI czar David Sacks said recently that the fund would only comprise digital assets that have been seized by the government. He also said that the government is exploring cost-neutral strategies to build the reserve’s holdings that would not impact taxpayers.<\/span><\/p>\n\nJust a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve. <\/p>\n
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…<\/p>\n
— David Sacks (@davidsacks47) March 7, 2025<\/a><\/p><\/blockquote>\n
This, according to the lawmaker, would benefit nobody other than existing Bitcoin and <\/span>certain crypto<\/span><\/a> holders, as well as the President himself.<\/span><\/p>\n He also said that no need has arisen that justifies an investment in the “volatile and speculative cryptocurrency market.” <\/span><\/p>\n Trump’s crypto reserve “would constitute nothing more than a highly speculative taxpayer-backed hedge to provide <\/span>bitcoin<\/span><\/a> speculators the assurance that when the crash comes, the State will deploy this fund to rescue it,” he added.<\/span><\/p>\n Connolly’s arguments contradict statements made by the White House regarding the reserve. <\/span><\/p>\n Trump’s crypto and AI czar David Sacks said recently that the fund would only comprise digital assets that have been seized by the government. He also said that the government is exploring cost-neutral strategies to build the reserve’s holdings that would not impact taxpayers.<\/span><\/p>\n Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve. <\/p>\n The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…<\/p>\n — David Sacks (@davidsacks47) March 7, 2025<\/a><\/p><\/blockquote>\n\n