David Edwards
Within the cryptocurrency industry, President Donald Trump’s plan to include altcoins in a U.S. strategic crypto reserve has sparked debate. Many people wonder why it makes sense to include more than just Bitcoin.
The project, which was unveiled on Truth Social, intends to create a reserve that includes Bitcoin, Ethereum, XRP, Solana, and Cardano. After a recent market decline connected to Bybit’s $1.4 billion security breach, the announcement caused a market recovery.
Crypto Leaders Support a Reserve Based Only on Bitcoin
Bitcoin supporters immediately opposed the plan, arguing that the reserve should only be available to the most popular cryptocurrency. Hunter Horsley, CEO of Bitwise, voiced doubt, saying that since Bitcoin is the “undisputed store of value for the digital age,” a reserve consisting solely of it “makes the most sense.”
Brian Armstrong, CEO of Coinbase, agreed, saying that Bitcoin by itself would be the ideal “successor to gold.” Nonetheless, he proposed that a market cap-weighted cryptocurrency index could guarantee neutrality if diversification was required.
Blockstream CEO Adam Back endorsed Armstrong’s position, but JAN3 CEO Samson Mow criticized it, mocking the notion of a government-backed cryptocurrency reserve.
Analogies to Broader Economic Strategy and Tech Stocks
Investing in technology stocks was compared to putting altcoins in a national reserve. The founder of Professional Capital Management, Anthony Pompliano, made the case that the United States could as well buy tech stocks if it were to include cryptocurrencies on its balance sheet. He emphasized the different risk profiles of digital assets in comparison to Bitcoin and gold.
Brad Garlinghouse, the CEO of Ripple, defended Trump’s choice in spite of criticism, referring to cryptocurrency maximalism as “the enemy of the industry’s progress.” He emphasized the necessity of a multi-chain strategy, drawing a comparison between Trump’s position and what he called the SEC’s restrictive tactics during the Biden era
The market responds with significant gains.
The market reacted well to the contentious discussion. Ethereum rose 10% to trade above $2,400, while Bitcoin jumped 11% to eclipse $94,000. According to CoinGecko data, altcoins also saw a surge, with Cardano rising 60%, XRP rising 27%, and Solana rising 25%.
Trump’s move may signal a significant change in the U.S. government’s posture on digital assets as the argument over the makeup of the planned reserve heats up. It remains to be seen if this action increases market divisions or boosts cryptocurrency acceptance.
