Donald Trump Took The Cryptocurrency World By Surprise Sunday, Announcing A Strategic Reserve Comprising Of Top Coins

Brian Armstrong, CEO of cryptocurrency exchange Coinbase, believed having just Bitcoin in the reserve would be the "best option," calling the asset a successor to gold.

Cryptocurrency exchange Coinbase's CEO, Brian Armstrong, weighed in on Sunday on former President Donald Trump's surprising announcement of setting up a strategic reserve with top cryptocurrencies.

Earlier in the day, Trump, in an interview with Breitbart News, announced his plan to form a national cryptocurrency reserve with coins like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP), Solana (CRYPTO: SOL), and Cardano (CRYPO: ADA). This statement arrived a day ahead of a cryptocurrency summit at the White House.

Reacting to Trump's statement, Armstrong said that he believed having an investment fund focused entirely on Bitcoin would be the “best option.”

"I think having an investment fund, crypto or otherwise, with just one asset is probably the best option. And then you can really evaluate how that asset is performing. I think Bitcoin is an asset that’s been around for 16 years now, has a large community, has good liquidity and is performing well," said Armstrong.

Earlier this year, Armstrong had suggested that Bitcoin could be a successor to gold.

"I think in the long term, Bitcoin could take the role that gold has had in the past as a store of value, which is something that people can use to preserve their capital over long periods of time. I think that's the role that Bitcoin is best suited for. Of course, it's up to the government to decide what assets they want to hold in their reserves."

David Sacks, former CEO of LegalZoom and co-founder of startups like Yammer and Podium, also shared his thoughts on Trump's statement.

"I think it’s great. I’m surprised it took them so long to get here, given how quickly the crypto ecosystem is moving," said Sacks.

Sacks noted that the U.S. has been setting up a cryptocurrency strategy for a while now.

"I think it’s a natural progression. We’ve seen how quickly the crypto ecosystem has grown in the last few years, and I think it’s something that the government is going to be increasingly focused on."

Peter Schiff, the economist and outspoken critic of Bitcoin, had a different take on Trump's statement.

"I’m not surprised that Trump is talking about Bitcoin. He’s always been interested in cryptocurrency. But I’m surprised that they’re including assets like XRP in the reserve. I think it’s clear that the Biden administration is focused on cryptocurrency and blockchain technology. We’ve seen a lot of activity from the administration on this front, including the creation of a new task force to study the implications of digital assets for the U.S. economy and financial system. I think we can expect to see even more focus on cryptocurrency in the coming months and years."

Cynthia Lummis (R-Wy.) pushes for leveraging gold certificates held at the Federal Reserve's 12 banks to fund acquisitions of Bitcoin.

Lummis, a known proponent of Bitcoin, has been vocal about exploring innovative avenues for bolstering the U.S. financial standing in the global arena.

In a recent interview, Lummis highlighted the potential of mobilizing gold certificates to facilitate Bitcoin purchases.

"We could use the gold certificates that are held in the Federal Reserve's 12 banks to fund the purchase of Bitcoin," Lummis said.

Lummis's proposal ties into her broader vision for U.S. financial strategy.

"We need to be thinking about how we can maintain the strength of the U.S. dollar in a world that is rapidly changing," Lummis said. "The U.S. is the world's reserve currency, and we have a responsibility to use that status wisely."

Lummis's comments come amid ongoing discussions in Congress about the role of cryptocurrency in the U.S. financial system.

The Securities and Exchange Commission has sued major cryptocurrency exchange Coinbase (NASDAQ:COIN) and smaller exchange Gemini for allegedly operating as unregistered securities exchanges.

The complaint against Coinbase focuses on its lending program, which allows users to earn interest on their cryptocurrency holdings. The SEC claims that this program should be registered with the agency.

The complaint against Gemini concerns its interest-bearing cryptocurrency products, which the SEC says should be registered with the agency as a cryptocurrency security.

Both Coinbase and Gemini have denied any wrongdoing and said they will vigorously defend themselves against the SEC's allegations.

The SEC's lawsuits are part of a broader crackdown on the cryptocurrency industry. Earlier this year, the agency sued hedge fund manager Michael Novogratz's Galaxy Digital for allegedly defrauding investors with its cryptocurrency products.

The SEC's actions have been met with mixed reactions from the cryptocurrency community. Some members of the community believe that the SEC is overstepping its bounds and trying to stifle innovation in the cryptocurrency industry.

However, other members of the community believe that the SEC is simply trying to enforce the law and protect investors