The debate over the U.S. Crypto Strategic Reserve has intensified after President Donald Trump’s announcement of a proposed national crypto reserve. While Trump’s plan includes Bitcoin (BTC), Ether (ETH), Solana (SOL), Cardano (ADA), and XRP, industry leaders like Coinbase CEO Brian Armstrong and Gemini co-founder Tyler Winklevoss argue that Bitcoin is the only true contender for such a designation.
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
— Brian Armstrong (@brian_armstrong) March 3, 2025
1. Just Bitcoin would probably be the best option - simplest, and clear story as successor to gold
2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S
Winklevoss, in a post on X (formerly Twitter), stated that Bitcoin is the only digital asset that meets the standard of a U.S. reserve asset. “An asset needs to be hard money that is a proven store of value like gold,” he said. Armstrong echoed this sentiment, highlighting Bitcoin’s simplicity and established role as “the clear successor to gold.”
The CEOs argue that other cryptocurrencies, while valuable for trading and development, lack Bitcoin’s stability, security, and historical track record as a store of value. Armstrong suggested that if diversification were necessary, a market cap-weighted index of cryptocurrencies could be an alternative.
Ethereum, Solana, and Others: Strategic or Risky?
The inclusion of ETH, SOL, ADA, and XRP in Trump’s proposed reserve has sparked mixed reactions. Cameron Winklevoss, Tyler’s twin and Gemini’s other co-founder, suggested that only Bitcoin—and possibly Ether—meet the criteria for a reserve asset. He likened them to America’s existing reserves of gold and oil, emphasizing their long-term value.
However, critics question the rationale behind including Proof-of-Stake (PoS) assets like Ethereum and Solana in a government-backed reserve. Samson Mow, CEO of Bitcoin technology firm Jan3, argued that only Proof-of-Work (PoW) cryptocurrencies like Bitcoin and Litecoin (LTC) should qualify due to their security and decentralization.
Not everyone opposes Trump’s multi-asset reserve plan. Cardano’s Charles Hoskinson defended XRP’s inclusion, citing its resilience and strong community support. Ripple CEO Brad Garlinghouse has long advocated for a diversified crypto reserve, aligning with Trump’s vision.
The market initially reacted positively to Trump’s announcement, with Bitcoin nearing $95,000. However, concerns over economic policies, potential trade tariffs, and inflation fears led to a downturn, with Bitcoin dropping below $85,000 within a day.
Jaw-dropping corruption in the US:
— Ben Norton (@BenjaminNorton) March 3, 2025
Trump's billionaire crypto czar is heavily invested in a fund whose top 5 holdings are the 5 in the US government Crypto Strategic Reserve.
Mere hours before Trump announced it, someone bought $200 million in Ethereum & Bitcoin on 50X LEVERAGE pic.twitter.com/LQWZceeTvB
Analysts at investment firm Bernstein noted that while Bitcoin as a sovereign reserve asset is logical, convincing policymakers to hold altcoins like Solana and Cardano may be more challenging. The effectiveness of a crypto reserve will largely depend on regulatory clarity and the feasibility of purchasing and storing these assets at a federal level.
With the first White House Crypto Summit scheduled for March 7, discussions on regulatory frameworks and stablecoin oversight will be critical in shaping the future of the U.S. Crypto Strategic Reserve.
HODL Team
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