"Crypto Titans Clash Over Trump's Altcoin-Fueled Reserve"

Coin WorldMonday, Mar 3, 2025 1:30 am ET

1min read

Crypto Leaders Push Back on Donald Trump’s Altcoin-Backed Reserve

President Donald Trump's recent announcement of a US crypto strategic reserve, comprising a basket of digital assets, has sparked debate among industry leaders. Many argue that Bitcoin (BTC) should be the sole reserve asset.

The proposed crypto reserve would include Bitcoin, Ethereum (ETH), XRP (XRP), and other digital assets, aiming to strengthen the US as a global leader in crypto. However, experts remain sharply divided over the selection of assets.

Brian Armstrong, CEO of coinbase, commented on Trump's strategic crypto reserve plan. In a recent post, he shared his thoughts on asset allocation.

"Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold," the post read.

Armstrong suggested using a market cap-weighted index of crypto assets if diversification is necessary. Despite considering both options, he emphasized that a Bitcoin-only reserve would be the easiest path forward.

Investor and author Fred Krueger also supported a market-weighted approach for the proposed crypto reserve. He outlined a suggested allocation, excluding foreign assets and stablecoins, with Bitcoin at 75%, followed by Ethereum at 12.4%, XRP at 5.7%, Solana at 3.1%, Dogecoin (DOGE) at 1.4%, and Cardano at 1.0%. Smaller allocations were designated for other altcoins.

Meanwhile, many in the crypto community voiced disappointment. Jeff Park, head of Alpha Strategies at Bitwise, was among those advocating for a Bitcoin-only reserve.

"Huge political miscalculation by Trump in underestimating just how crucial it was for the Strategic Reserve to focus solely on Bitcoin," Park posted.

He warned that including altcoins with unclear national significance risks perceptions of insider dealing, even if unfounded. Park also noted that while Bitcoin should be the only strategic reserve asset, broader crypto adoption can still be supported from an investment perspective.

Even long-time Bitcoin skeptic Peter Schiff acknowledged the logic behind a BTC reserve. Despite his disagreement, he compared it to the gold reserve, recognizing Bitcoin as "digital gold." However, he criticized the inclusion of XRP, questioning its necessity in the crypto reserve.

Alex Xu, a research partner at mint Vent

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