Trump's Crypto Reserve: Schiff Calls for Probe Amid Market Manipulation Allegations

Economist Peter Schiff has called for a comprehensive investigation into President Trump's recent announcement of a US Crypto Strategic Reserve, alleging potential market manipulation and insider knowledge. Schiff, a long-time critic of cryptocurrencies, has raised concerns about the diverse asset base of the reserve and the possibility of insider trading.

Trump's announcement, made via Truth Social, revealed plans to include XRP, Solana, and Cardano in the reserve, with Bitcoin, Ethereum, and other digital currencies to follow. The news triggered a sharp rally in these coins' prices, only to be followed by a significant pullback. Schiff has since accused Trump of orchestrating a "pump and dump" scheme to benefit insiders with prior knowledge of the announcement.

Schiff has demanded an investigation into the authorship of the Truth Social posts and a probe into who had prior knowledge of the announcement. He has also called for an audit of crypto purchases leading up to the announcement, as well as full disclosure of emails and text messages from Trump's staff, family, campaign donors, and Truth Social employees that could expose alleged insider dealings.

Schiff's allegations have been supported by a post from Eric Trump, the President's son, who celebrated the timing of the announcement. Schiff seized on this comment as possible evidence of wrongdoing, arguing that the announcement was a planned pump and dump, deliberately leaked when volume was thin to maximize impact.

Despite Schiff's criticism, many industry leaders have also questioned the inclusion of altcoins in the reserve, arguing that Bitcoin should be the exclusive asset for US crypto reserves. Experts have speculated that additional assets, such as Chainlink, Ondo, and Litecoin, could be considered for future additions to the reserve.

The evolving landscape of digital currencies has raised eyebrows among many stakeholders regarding the composition of the proposed Crypto Strategic Reserve. Critics within the crypto community believe that Bitcoin's dominance should be recognized and legislatively protected as the primary asset, arguing that including altcoins dilutes the purpose of the reserve and exposes investors to unnecessary risks.

Schiff's allegations highlight the ongoing tensions and complexities within the cryptocurrency market. The call for a congressional investigation points to concerns about transparency and potential manipulations surrounding market-sensitive announcements. As the crypto landscape continues to evolve, the need for regulatory clarity and robust frameworks becomes increasingly critical for protecting investors and ensuring the integrity of financial markets.