US President Donald Trump announced on Sunday (2) the creation of a strategic crypto reserve for the country. Composed of a set of digital assets such as XRP, ETH, Sol and ADA, the initiative generated debate between industry leaders. Many argue that Bitcoin (BTC) should be the only reserve asset.
According to the official announcement, the Crypto Reserve proposal aims to strengthen the US as a global leader in crypto. After the disclosure, the announcement triggered a substantial high for the coins.
Brian Armstrong, CEO of Coinbase, commented on Trump’s Strategic Strategic Reserve Plan. In the last X (former Twitter) post, he shared his opinions on the allocation of assets.
“… Only Bitcoin would probably be the best option – simpler and a clear story as gold successor,” said the post.
However, if diversification is necessary, it suggested using an index weighted by the capitalization of the asset market to ensure neutrality. Despite considering both options, Armstrong emphasized that a Bitcoin reserve would be the easiest way.
Investor and author Fred Krueger also supported a market -weighted approach to the Crypto Reserve proposal.
“The strategic crypto reserve should be considered by the market, such as the SP500”, stated.
In addition, Krueger outlined a suggested allocation, excluding foreign assets and stablecoins, with 75%bitcoin, followed by Ethereum by 12.4%, XRP at 5.7%, solana at 3.1%, dogecoin (Doge) at 1.4%and cardano at 1.0%. Minor allocations were designated for Litecoin (LTC), Avalanche (Avax), Polkadot (DOT) and Cosmos (Atom).
Trump’s political error?
Meanwhile, many in the cryptian community expressed disappointment. Jeff Park, boss of Alpha Strategies at Bitwise, was among those who defended a Bitcoin reserve only.
Trump’s great political mistake in underestimating how crucial was for the strategic reserve to focus only on Bitcoin, Park posted.
He warned that include altcoins without clear national meaning risks perceptions of internal negotiations, even unfounded. Park also noted that while bitcoin should be the only strategic reserve asset, the broader adoption of crypto can still be supported by an investment perspective.
Even Bitcoin longtime skeptic Peter Schiff recognized the logic behind a BTC reserve. Despite his disagreement, he compared with the Golden Reserve, recognizing Bitcoin as “Digital Gold”. However, he criticized the inclusion of XRP, questioning his need in the crypto reserve.
But what is the logic for an XRP reserve? Why the hell would we need this? Schiff commented.
Alex Xu, a research partner at Mint Ventures, argued that Trump made a politically motivated decision to reward projects that supported him financially. He called the “advertising space” measure within Trump’s presidential powers.
However, in the long run, pushing actives like Ada and XRP as reserves is absurd. This undermines BTC’s legitimacy as a strategic reserve and further reduces the chances of approving a federal BTC reserve bill, it these.
In addition, he also pointed to the narrow republican majority in the House. Therefore, he suggested that this makes it unlikely that the legislation including Sol, ADA and XRP in national reserves will be approved.
Xu also suggested that the only viable option would be a Treasury -controlled sovereign background. This would allow Trump to buy these assets without the approval of Congress.
But how likely is that? How much sun, XRP and ADA need to channel to Trump’s circle to issue an executive order using taxpayer money to buy them? Trump’s style is about making big headlines with minimal effort. He will not invest heavily or take great risks without significant personal gain, he questioned.
Arthur Hayes, former Bitmex, adopted a more critical stance and ruled out Trump’s crypto reserve proposal as rhetoric.
Nothing new here. Only words, he stated.
He argued that, without the approval of Congress to contract loans or reevaluating gold, the government has no resources to buy Bitcoin or other cryptocurrencies.
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