Trump’s crypto reserve plan sparks controversy, with industry leaders questioning government intervention and the inclusion of altcoins.
Crypto Leaders Criticize Trump’s Reserve Plan
President Donald Trump’s announcement of a U.S. crypto strategic reserve has drawn unexpected backlash from key figures in crypto and tech.
While the 47th president aims to make the U.S. the “Crypto Capital of the World,” critics argue that government involvement in crypto markets contradicts free-market principles.
Bitcoin-Only Advocates Reject Altcoin Inclusion
Coinbase CEO Brian Armstrong suggested that the reserve should only include Bitcoin, calling it the “successor to gold.”
Investor Joe Lonsdale went further, stating that government-backed crypto reserves are “not the proper, principled role of government.”
Trump’s Inner Circle Also Pushes Back
Even those close to Trump’s crypto czar David Sacks have raised concerns. Jason Calacanis called the plan the “Trump Pump” and “insane grift.” Jeff Park (Bitwise strategist) called the inclusion of altcoins a political miscalculation.
Crypto Market Reacts to Trump’s Announcement
Trump’s initial announcement triggered a 10% rally in Bitcoin, but prices fell back below $86,000 following new tariff concerns.
The global crypto market lost $340 billion, highlighting investor uncertainty over how the crypto reserve would function.
Regulatory and Funding Questions Remain
Analysts at Bernstein questioned how the reserve will allocate funds across tokens. Additionally, they ask whether Trump has the legal authority to create the fund. They are keen on understanding how the government will finance crypto purchases.
Singapore-based QCP Capital suggested the move was politically motivated, calling it a “calculated play” to boost Trump’s approval ratings.
Crypto Billionaires Heavily Funded Trump’s Election
Crypto-backed PAC Fairshake and its affiliates spent $135 million on the 2024 election, with major donors including Coinbase, Ripple Labs, and Andreessen Horowitz.
However, some billionaire supporters now question whether Trump’s crypto policies align with free-market values.
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