Gushiken Yona
U.S. President Donald Trump’s proposal for a U.S. Crypto Reserve, including Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, has sparked immediate debate within the industry, pitting Bitcoin maximalists against proponents of a multi-coin approach.
Revealed on Truth Social and slated for further discussion at Friday’s White House Crypto Summit, Trump’s plan, led by AI and Crypto Czar David Sacks, is rooted in Executive Order 14178 (signed January 23, 2025). The order, revoking the previous EO 14067, aims to make the U.S. the “Crypto Capital of the World.” The central point of contention is the reserve’s potential inclusion of altcoins alongside Bitcoin and Ethereum.
Bitcoin’s Dominance Questioned in Latest Crypto Reserve Info
For staunch Bitcoin advocates, often referred to as “Bitcoin maximalists,” the idea of a U.S. crypto reserve that includes anything other than Bitcoin is deeply problematic.
Hunter Horsley, CEO of Bitwise, a prominent crypto asset management firm, expressed this viewpoint succinctly. “I imagined a Strategic Reserve would be just Bitcoin,” Horsley stated, emphasizing Bitcoin’s status as the “undisputed store of value for the digital age.”
This perspective highlights a core belief within a significant segment of the crypto community: that Bitcoin’s unique properties, including its limited supply and decentralized nature, make it the only suitable digital asset for a national reserve.
Coinbase CEO Brian Armstrong, while acknowledging the potential benefits of a government-backed crypto reserve, echoed Horsley’s preference for a Bitcoin-only approach. “Just Bitcoin would probably be the best option — simplest, and clear story as successor to gold,” Armstrong commented.
He suggested a market-cap-weighted index as a potential, albeit less desirable, alternative for those seeking greater diversification. This alternative highlights the potential for an unbiased crypto reserve asset allocation strategy.
U.S. Crypto Reserve: A Multi-Chain Future?
The vision of a U.S. crypto reserve encompassing multiple digital assets finds support among those who believe in a “multi-chain” future for the cryptocurrency ecosystem. Brad Garlinghouse, CEO of Ripple (XRP), a company focused on blockchain-based payment solutions, championed this broader perspective.
“Maximalism is the enemy of the industry’s progress,” Garlinghouse asserted, welcoming what he perceives as a recognition of the diverse applications and potential of various cryptocurrencies.
Concerns and Criticisms Emerge
The proposal also drew sharp criticism. BitMEX co-founder Arthur Hayes dismissed it as “just words,” demanding Congressional funding.
“Nothing new here. Just words. Lmk when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy bitcoin and shitcoins,” Hayes said.
Peter Schiff, Chief Economist & Global Strategist at Europac.com, specifically questioned the inclusion of XRP: “I get the rationale for a Bitcoin reserve…But what’s the rationale for an XRP reserve? Why the hell would we need that?”
Further fueling concerns, Adam Cochran, a partner at CEHV, raised the possibility of “pay-to-play” influence, suggesting prior investments by Trump associates might be driving the selection of specific cryptocurrencies.
The upcoming White House Crypto Summit is expected to shed further light on the details of the plan and address the mounting criticisms.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
