Trump’s strategic reserve talk splits the cryptocurrency industry.
President Trump’s plan for a strategic crypto reserve has stirred mixed feelings within the cryptocurrency industry.
Trump’s efforts to strengthen the digital assets sector, which was subject to strict regulations during the Biden administration, have been generally well received.
Even those who could profit from the proposal were taken aback by Trump’s recent revelation that he would create a cryptocurrency reserve using assets other than bitcoin, the most valuable cryptocurrency.
The proposed proposal was described as a “unforced error that will be regretted in the future” by Anthony Pompliano, the founder and CEO of the financial firm Professional Capital Management.
In a long blog post, Pompliano pointed out that his critique coincides with the announcement of Trump by “someone who stands to substantially benefit financially.”
Trump said online on Sunday that a cryptocurrency reserve would “elevate this industry after years of corrupt attacks by the Biden administration.” He also provided additional specifics regarding the reserve.
Trump posted on Truth Social, “That’s why my Executive Order on Digitial Assets instructed the Presidential Working Group to proceed with a Crypto Strategic Reserve that comprises XRP, SOL [Solana], and ADA [Cardano].”
Despite his promise last July to establish a strategic bitcoin reserve, internet users quickly pointed out that his statement had no mention of bitcoin.
“And, obviously BTC [bitcoin] and ETH [Ethereum], as other valuable cryptocurrencies, will be at the heart of the Reserve,” the president added after providing clarification a few minutes later.
“I adore Ethereum and Bitcoin as well!” Trump went on.
“The U.S. has strategic reserves of assets like gold, oil, cheese, and other assets that are important to the strength of our balance sheet or have national importance.” Pompliano claimed that the U.S. is not in the business of purchasing stocks or other investment assets.
He went on to say, “Crypto tokens like ETH, SOL, XRP, and ADA don’t fit that framework,” implying that they are more akin to technology stocks than physical currency or natural commodities.
The co-founders of the cryptocurrency exchange Gemini, Cameron and Tyler Winklevoss, voiced the opposition to any reserve that contains currencies other than bitcoin.
Because Trump supports the industry, the brothers each gave $1 million in bitcoin to his reelection campaign.
Bitcoin is presently the only digital asset in the world that satisfies the requirements for a strategic reserve, according to Tyler Winklevoss, who wrote this on Monday.
“An asset must be hard currency with a proven value, such as gold.”
Cameron also referred to a bitcoin reserve as a “must” and supported it.
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