Trump’s US Crypto Reserve Plan Sparks Controversy Among Industry Leaders!

Jakarta, Pintu News – President Donald Trump’s announcement of the establishment of a crypto strategic reserve in the United States, which includes a basket of digital assets, has sparked heated debate among industry leaders. Many argue that Bitcoin should be the only reserve asset.

Asset Selection Controversy: Experts Debate About US Crypto Reserves

According to the official announcement, the proposed crypto reserve will include Bitcoin (BTC), Ethereum , Ripple (XRP), Solana (SOL), Cardano , and other digital assets. The initiative aims to strengthen the US position as a global leader in crypto. The announcement also triggered significant price increases for these coins.

However, experts remain sharply divided over the choice of assets included in the reserve. Brian Armstrong, CEO of Coinbase, commented on Trump’s strategic crypto reserve plan. In his latest post on X (formerly Twitter), he shared his thoughts on asset allocation.

“Perhaps only Bitcoin is the best choice – the simplest, and the obvious successor to gold,” he writes. However, if diversification is required, he suggests using a market capitalization-weighted index of crypto assets to ensure neutrality. While considering both options, Armstrong emphasizes that a Bitcoin-only reserve would be the most straightforward path.

Also Read: Why is Ripple Still Fighting in Court Despite SEC Dropping Another Crypto Case?

Supporters of Market-Weighted Approach

Investor and author Fred Krueger also supports a market-weighted approach to the proposed crypto reserve. “The Strategic Crypto Reserve should be Market Weighted, like the SP500,” he said. He outlined the suggested allocation, excluding foreign assets and stablecoins, with Bitcoin at 75%, followed by Ethereum at 12.4%, Ripple at 5.7%, Solana at 3.1%, Dogecoin (DOGE) at 1.4%, and Cardano at 1.0%.

Smaller allocations were set for Litecoin (LTC), Avalanche (AVAX), Polkadot , and Cosmos (ATOM). Meanwhile, many in the crypto community were disappointed. Jeff Park, head of Alpha Strategies at Bitwise, is among those in favor of Bitcoin-only reserves.

“It was a big political mistake by Trump to underestimate how important the Strategic Reserve is to focus solely on Bitcoin,” Park wrote. He warned that the inclusion of altcoins with unclear national significance risks giving rise to perceptions of insider dealing, albeit unfounded ones. Park also noted that while Bitcoin should be the only strategic reserve asset, wider crypto adoption can still be supported from an investment perspective.

Criticism and Support for Trump’s Decision

Peter Schiff, long a skeptic of Bitcoin, acknowledges the logic behind BTC reserves. Although he disagreed, he compared it to gold reserves, recognizing Bitcoin as “digital gold.” However, he criticized Ripple’s inclusion, questioning its need in crypto reserves. “But what is the reason for the Ripple reserve? Why do we need it?” Schiff said.

On the other hand, Grayscale Investments CEO, Peter Mintzberg, praised the decision. “We are pleased to see the proposed investment in digital assets by the US Government. Grayscale currently operates the only publicly traded investment vehicle in the US that holds the exact same assets included in the newly announced US Crypto Strategic Reserve,” Mintzberg told BeInCrypto.

Conclusion

Overall, the industry remains divided. Although crypto leaders indisputably agree that the US reserve is a major development for the industry, the inclusion of altcoins might affect its chances of gaining congressional approval.

Also Read: XRP Faces Hurdle at $2.4: Can Bulls Break Through? (4/3/25)

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Trump US Crypto Reserve Debate. Accessed on March 4, 2025
• Featured Image: Generated by AI