Trump's US Crypto Reserve Announcement Sparks Debate as Experts Argue Bitcoin Should Be the Sole Asset

President Donald Trump's announcement of a US crypto reserve, comprising a basket of digital assets, has stirred debate among industry leaders.

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

This debate follows Trump’s executive order on digital assets, which directed the Presidential Working Group to establish the reserve.

A Divisive Selection? Experts Debate Trump’s US Crypto Reserve

According to the official announcement, the proposed crypto reserve would include Bitcoin, Ethereum (ETH), XRP (XRP), Solana (SOL), Cardano (ADA), and other digital assets. The initiative aims to strengthen the US as a global leader in crypto.

Notably, the announcement triggered a substantial rally for the coins. Yet, experts remain sharply divided over the choice of assets included in the reserve.

Brian Armstrong, CEO of Coinbase, shared his thoughts on asset allocation in the latest post on X (formerly Twitter).

“Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold. If diversification is necessary, could use a market cap-weighted index of crypto assets to ensure neutrality.”

Considering both options, Armstrong stated that a Bitcoin-only reserve would be the easiest path forward.

Investor and author Fred Krueger also expressed support for a market-weighted approach for the proposed crypto reserve. According to him, the Strategic Crypto Reserve should be Market Weighted, like the SP500.

In his post, Krueger suggested an 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 Litecoin (LTC), Avalanche (AVAX),Polkadot (DOT), and Cosmos (ATOM).

Meanwhile, many in the crypto community expressed 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 stated.

He cautioned that including altcoins with unclear national significance could invite perceptions of insider dealing, even if unfounded. Park further 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.

“But what’s the rationale for an XRP reserve? Why the hell would we need that?” Schiff asked.

Alex Xu, a research partner at Mint Ventures, argued that Trump made a politically motivated decision to reward projects that financially backed him, calling it an “advertising slot” within Trump’s presidential powers.

“However, in the long run, pushing assets like ADA and XRP as reserve holdings is absurd. It undermines the legitimacy of BTC as a strategic reserve and further reduces the chances of passing a BTC reserve bill at the federal level.”

He noted that with Republicans holding a narrow majority in the House and Democrats controlling the Senate, it’s highly unlikely that legislation including SOL, ADA, and XRP in national reserves would pass.

Xu suggested the only feasible option would be a sovereign wealth fund controlled by the Treasury, which would enable Trump to buy these assets without congressional approval.

“But how likely is that? How much would SOL, XRP, and ADA need to funnel into Trump’s circle for him to issue an executive order using taxpayer money to buy them? Trump’s style is about making big headlines with minimal effort. He won’t invest heavily or take on major risks without significant personal gain.”

Arthur Hayes, former CEO of BitMEX, took a more critical stand, dismissing Trump’s crypto reserve proposal as rhetoric.

“Nothing new here. Just words. Without Congress approving borrowing more funds or an executive order to revalue gold, the government lacks the resources to buy Bitcoin or any other cryptocurrency.”