SBR will bring “no tangible benefits” and will only enrich President Donald Trump and his sponsors, according to a letter from U.S. Representative Gerald Connolly to Treasury Secretary Scott Bessent.
The legislator, representing Michigan and the Democratic Party, is a member of the Committee on Oversight and Government Reform.
Connolly emphasized that Trump did not consult Congress regarding the SBR and did not obtain permission for it. Taxpayers should not fund “the dumbest idea in the world.”
The congressman accused the president of a conflict of interest, noting similarities between the SBR and the crypto reserve of World Liberty Financial, associated with the president’s family. He described the TRUMP token as a “money grab” that allowed Trump-affiliated organizations to profit from trading operations exceeding $100 million.
“There is no strategic need for investments in the volatile cryptocurrency market. This will result in nothing more than highly speculative hedging […]. Market participants will have the assurance that the government will deploy this fund to bail them out,” the letter states.
Connolly also called Trump’s plans “unjustified fiscal policy,” pointing to the selection of digital assets via social media.
The Michigan representative asked Bessent to provide documents related to the SBR and a complete list of steps taken by the Trump administration to eliminate conflicts of interest.
In the letter, Connolly also inquired whether the working group on digital asset markets had reviewed the financial disclosures of White House team officials, including Elon Musk.
Trump tasked the development of a bitcoin purchasing strategy without additional taxpayer expenses. Experts believe specific measures should be presented by Treasury Secretary Scott Bessent by May 5.
Potential funding sources include the liquidation of excess Currency Stabilization Fund reserves, the sale of Special Drawing Rights from the IMF, or the revaluation of gold certificates.
On March 6, Trump signed an order establishing the SBR.
The directive provides for the storage of assets seized by the Treasury in criminal and civil cases. The sale of cryptocurrency from the structure is prohibited.
The order also stipulates the creation of a separate altcoin repository. These assets must come solely from confiscations and not be additionally purchased. They can only be sold on the market in exceptional cases, if deemed necessary by the Treasury.
Earlier, K33 Research saw serious intentions by the authorities regarding digital assets in the initiative to create the SBR.
On March 11, Cynthia Lummis introduced an updated Bitcoin Act in the U.S. Senate, which would allow the government to hold more than 1 million BTC within the crypto reserve.