President Donald Trump’s announcement of a strategic cryptocurrency reserve in the United States has sparked intense debate within the industry. While the initiative aims to strengthen the country’s leadership in the crypto sector, many experts argue that Bitcoin (BTC) should be the sole reserve asset.
Controversy Over Asset Selection
According to the official announcement, the reserve would include Bitcoin, Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), and other digital assets. The plan, introduced through an executive order, directs the Presidential Working Group to establish the reserve to bolster the U.S. position in the crypto market.
The announcement led to a surge in the prices of the included cryptocurrencies but also drew criticism. Brian Armstrong, CEO of Coinbase, voiced his concerns on X (formerly Twitter):
“Only Bitcoin would probably be the best choice: the simplest and with a clear history as a successor to gold.”
Although Armstrong acknowledged the potential for diversification, he suggested that, if implemented, the reserve should follow a market capitalization-weighted index to ensure neutrality. However, he emphasized that a Bitcoin-only reserve would be the most logical choice.
Investor and author Fred Krueger supported a market cap-based approach similar to the S&P 500, proposing that 75% of the reserve be allocated to Bitcoin, followed by Ethereum (12.4%), XRP (5.7%), Solana (3.1%), Dogecoin (1.4%), and Cardano (1%). Smaller allocations would go to Litecoin (LTC), Avalanche (AVAX), Polkadot (DOT), and Cosmos (ATOM).
Strong Rejection of Altcoin Inclusion
Many within the crypto community have rejected Trump’s decision to include altcoins. Jeff Park, head of Alpha Strategies at Bitwise, called the move a “huge policy mistake.”
“Including altcoins without clear national importance creates perceptions of insider dealing, even if there is no evidence of it,” Park warned.
Although he advocated for a Bitcoin-exclusive reserve, he acknowledged that broader cryptocurrency adoption could still be encouraged from an investment standpoint.
Even Bitcoin skeptic Peter Schiff conceded that BTC could have a place as a reserve asset, likening it to gold. However, he criticized the inclusion of XRP, stating:
“What is the logic behind including XRP in a reserve? Why on earth would we need that?”
Political Motives Behind the Reserve
Alex Xu, a research partner at Mint Ventures, suggested that the selection of assets was influenced by political and financial interests. According to Xu, Trump may have favored projects that supported him financially, using the reserve as a form of “advertising space.”
“Pushing assets like ADA and XRP as reserves 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 said.
Xu also pointed out that the narrow Republican majority in the House of Representatives makes it unlikely that legislation including assets such as SOL, ADA, and XRP in national reserves will pass. He believes the only viable alternative would be the creation of a sovereign fund controlled by the Treasury.
An Ongoing Debate
Trump’s proposed crypto reserve has received mixed reactions. While some see it as a step toward institutional acceptance of cryptocurrencies, others view it as an unnecessary risk that could damage the market’s legitimacy. The debate over which digital assets should be included—and whether Bitcoin should stand alone—remains far from settled.
