- Trump’s Crypto Reserve Plan – President Trump proposes a government-held cryptocurrency reserve including Bitcoin, Ether, XRP, Solana, and ADA, aiming to hedge against inflation and boost the U.S. economy.
- Mixed Reactions & Controversy – Economists criticize it as risky and unnecessary, while Bitcoin advocates feel betrayed by the inclusion of altcoins. Accusations of favoritism and conflicts of interest have also emerged.
- Market Impact & Future Steps – The announcement briefly boosted crypto prices, but uncertainties remain. More details are expected at the White House Crypto Summit on March 7.
President Donald Trump’s pledge to establish a cryptocurrency reserve fund has set off shockwaves across the crypto world. The proposed initiative—still under development—would see the federal government purchasing and holding various crypto assets alongside traditional reserves like gold and foreign currencies. While supporters hail it as a move to boost the U.S. economy, skeptics warn of financial risks and conflicts of interest.
What’s the Crypto Strategic Reserve?
Trump’s crypto strategic reserve aims to hedge against inflation and economic uncertainty by diversifying the government’s assets with cryptocurrency. Advocates believe this could enhance the dollar’s stability over time, while critics caution that volatile crypto prices could saddle the government with substantial debt.
Despite concerns, the plan aligns with Trump’s broader vision to position the U.S. as the global leader in cryptocurrency innovation.
Trump’s Crypto Reserve Vision
Announced in a March 2 Truth Social post, Trump’s reserve proposal follows his campaign promises to deregulate crypto markets and remove former SEC Chairman Gary Gensler. During the 2024 Bitcoin Conference, Trump floated the idea of a Bitcoin reserve, but the concept has since evolved into a broader crypto asset fund.
The President’s Working Group on Digital Asset Markets, established via executive order, has been tasked with developing regulations and evaluating a national “digital asset stockpile.” While their final recommendations aren’t due until July, Trump has already confirmed that the reserve will include Bitcoin, Ether, XRP, Solana, and ADA.
What Cryptos Will Be Included?
After months of speculation, Trump confirmed that the reserve will consist of Bitcoin, Ether, XRP, Solana, and ADA. Initially, he mentioned only XRP, Solana, and ADA in his post but later clarified that Bitcoin and Ether would also be “at the heart of the Reserve.”
The announcement triggered a temporary surge in crypto prices, with Bitcoin jumping from $85,000 to nearly $95,000 before settling back down. Cardano saw an 80% spike before losing half of its gains, overtaking Dogecoin in market cap rankings.
How Will the Reserve Work?
Details remain scarce, but Trump’s digital asset working group is still drafting a formal plan. Any new government crypto purchases would likely require congressional approval.
David Sacks, the administration’s AI and crypto policy chief, hinted at further updates during the upcoming White House Crypto Summit on March 7. Meanwhile, Senator Cynthia Lummis’ BITCOIN Act offers a rough blueprint, suggesting Treasury purchases of up to 1 million Bitcoin over five years through Federal Reserve surplus reallocations and gold certificate adjustments.
Reactions to Trump’s Crypto Reserve
Economists’ Skepticism
Traditional economists have overwhelmingly dismissed the idea. In a survey of 40 top economists, only one supported a national crypto reserve—and later admitted he had checked the wrong box.
“Borrowing more to ‘invest’ in Bitcoin is about the worst idea I’ve heard,” wrote John Cochrane of the Hoover Institution.
Steven Rattner, CEO of Willett Advisors, called the plan a “waste of taxpayer dollars designed to enrich crypto insiders.”
Bitcoiners Feel Betrayed
Trump’s pivot from a “Bitcoin reserve” to a “crypto reserve” angered Bitcoin maximalists, who had expected exclusive BTC holdings. Coinbase CEO Brian Armstrong argued that Bitcoin’s fixed supply and gold-like qualities made it the only suitable choice. Anthony Pompliano likened the inclusion of other coins to a “random speculative gamble.”
Accusations of Favoritism
Critics accuse Trump of rewarding crypto firms that donated heavily to his campaign. Ripple, the company behind XRP, contributed $49 million to the pro-crypto PAC Fairshake and $5 million to Trump’s inauguration fund. Several firms linked to reserve-eligible tokens have been entangled in SEC lawsuits—some of which have mysteriously been dropped.
Potential Conflicts of Interest
David Sacks claims he divested from crypto before joining the White House, but his firm, Craft Ventures, has ties to Bitwise, a fund manager holding many of the same cryptos in Trump’s reserve. Meanwhile, Eric Trump’s pre-announcement social media posts urging followers to “₿uy the dips!!!” have raised concerns about market manipulation.
The Bottom Line
Trump’s crypto reserve initiative is bold, controversial, and—at least for now—vague. While proponents see it as a revolutionary step toward economic modernization, critics argue it’s a risky move riddled with ethical concerns. One thing’s certain: this policy is set to be one of the most polarizing economic experiments in modern history.
