Coinbase CEO Proposes Bitcoin-Only Strategy for U.S. Crypto Reserve

Coinbase CEO Brian Armstrong has weighed in on President Trump’s proposed Crypto Strategic Reserve, suggesting that Bitcoin alone would be the best option for the U.S. In a response to White House AI and Crypto Czar David Sacks on X, Armstrong outlined two potential strategies for structuring the reserve.

The first strategy, which Armstrong favors, would treat Bitcoin (BTC) as the modern equivalent of gold, focusing solely on it. This approach would minimize government interference in the larger cryptocurrency market and strengthen Bitcoin’s position as a store of value, offering stability, transparency, and simplicity.

The second approach would distribute assets based on the respective market sizes of each coin using a market cap-weighted index. For example, if Bitcoin makes up 50% of the total crypto market and Ethereum (ETH) 20%, then the reserve would allocate its assets in proportion to these figures. This method avoids favoritism and may eventually reflect changes in the market. However, Armstrong suggested that a Bitcoin-only approach might be more feasible and consistent with the reserve’s objective.

Armstrong’s remarks coincide with Trump’s recent push to proceed with creating a strategic cryptocurrency reserve that will comprise BTC, ETH, Solana (SOL), Cardano (ADA), and XRP (XRP). The decision has sparked debate among the financial and cryptocurrency communities, with differing views on its ramifications.

Some crypto advocates have praised the reserve as a landmark move toward widespread adoption, arguing that it will boost investment and establish the U.S. as a leader in digital assets worldwide. Others, including BitMEX co-founder Arthur Hayes, remain skeptical. Hayes dismissed the announcement as political posturing, stating that without congressional approval or a revaluation of gold, the government has no way to fund large-scale crypto purchases.

As Trump gets ready to host the White House Crypto Summit, the debate over the structure of the reserve is growing more intense. Following his Mar. 2 announcement of a crypto strategic reserve, the cryptocurrency market has already risen by 8%, and all eyes are now on the administration’s next move.