U.S. Launches Crypto Reserve: Bitcoin vs. Altcoins in Heated Debate

The U.S. government's decision to establish a Strategic Crypto Reserve has sparked intense debate, with industry leaders questioning its structure and asset selection. On March 2, U.S. President Donald Trump announced the initiative, aiming to solidify the country's leadership in the digital asset space. The reserve will include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), but officials have not disclosed the weighting of these assets.

The inclusion of multiple cryptocurrencies has raised concerns, as many expected the reserve to focus solely on Bitcoin. Critics argue that adding altcoins complicates the initiative and could create unintended market biases. Jeff Park, head of Alpha Strategies at Bitwise, criticized the decision as a political miscalculation, warning that including assets beyond Bitcoin could raise concerns about government favoritism.

Coinbase CEO Brian Armstrong suggested that a Bitcoin-exclusive reserve would have provided a more straightforward strategy. He proposed that if diversification is necessary, a market-cap-weighted index of digital assets could be a more structured approach. Bitwise CEO Hunter Horsley also weighed in, emphasizing that Bitcoin remains the strongest store of value and that a strategic reserve should focus on the most reliable digital asset.

Supporters of the selected altcoins defended their inclusion, arguing that it was part of a broader win for the emerging industry. Ripple CEO Brad Garlinghouse criticized Bitcoin maximalism, stating that the crypto industry thrives on collaboration. He welcomed the government's recognition of a multichain future. Similarly, Cardano founder Charles Hoskinson highlighted his blockchain's long-term commitment to security and decentralization and expressed confidence in its ability to contribute meaningfully to the crypto landscape.