Controversy Over Virtual Currency Strategic Reserves... "Is Trump Increasing His Wealth Using Taxes?"

Growing Voices Suspect Insider Trading

Controversy is growing over U.S. President Donald Trump's virtual currency strategic reserve policy, which is said to benefit a select few investors.

On the 3rd (local time), the British daily The Telegraph reported concerns that if the U.S. government invests in virtual currency using tax money, only a small number of investors, including the Trump family, could profit.

President Trump, who declared before taking office that he would make the U.S. the capital of virtual currency, recently ordered the promotion of a virtual asset strategic reserve through an executive order. This means not only retaining the virtual currencies already held but also purchasing new virtual currencies with government funds.

While virtual currency investors welcomed the move, some voices suspect insider trading. The list of virtual currency investments announced by President Trump closely resembles the composition of a virtual currency fund that David Sacks, the White House virtual currency and artificial intelligence (AI) policy czar, invested in before joining the administration. However, Sacks maintains that he has disposed of all virtual currency assets to avoid conflicts of interest.

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Furthermore, the Trump family's connections to the virtual currency industry are cited as factors fueling market suspicion. Trump's eldest and second sons, Junior and Eric, are affiliated with the virtual currency platform company 'World Liberty Financial.' Additionally, the social networking service (SNS) Truth Social, founded by President Trump, has announced plans to invest up to $250 million in assets including virtual currencies.

Nick Carter of virtual currency investment firm Castle Island Ventures stated, "Investors in virtual currencies such as Bitcoin still represent only a small fraction of Americans," adding, "Even if the U.S. government's recent virtual currency-related measures were made with genuine intent, critics of President Trump may view them as actions taken for personal gain."