President Donald Trump has announced plans to create a strategic crypto reserve, shifting gears from his earlier promise to stockpile Bitcoin. Trump’s cryptocurrency reserve will consist of Bitcoin, often referred to as “digital gold” for its ability to hedge against inflation, along with Ether, the second-largest cryptocurrency by market cap, XRP, Solana, and Cardano.
While the latest proposal lacks key details — such as the size, timing, and whether the Federal Reserve or another entity will manage it —Trump’s move has sparked debate within the crypto industry.
Some argue that diversifying the national reserve with various cryptocurrencies could be beneficial, while others caution that it could be a risky proposition. And beyond Bitcoin, which serves as a hedge against inflation, other cryptocurrencies have distinct use cases, and adding them to the reserve may not be necessary or prudent.
Lorien Gabel, co-founder and CEO of blockchain company Figment, welcomed Trump’s move, calling it “a monumental shift in how digital assets are valued at the highest levels.” However, he emphasized that merely holding these assets isn’t enough—staking is essential for securing them and maintaining the stability of their networks.
In the world of cryptocurrency, staking involves committing a certain amount of cryptocurrency to a blockchain network for a specified period. This process plays a crucial role in supporting the network’s operations, including validating transactions and maintaining its overall security.
“If the U.S. government is serious about making these assets part of its financial infrastructure, it should ensure they are being staked responsibly.”
Michael Terpin, CEO of Transform Ventures and author of Bitcoin Supercycle, told Quartz in an email that the proposed U.S. crypto strategic reserve is ill-received by the Bitcoin community.
He argues that a strategic stockpile should consist solely of the highest-quality, truly decentralized digital asset – which is Bitcoin. He added that it is the only digital asset consistently reaching new all-time highs in every cycle.
“Adding secondary cryptos controlled by companies and foundations would be akin to adding gold mining and energy stocks to the strategic gold and oil reserves.”
“Keep it simple and safe. Keep the strategic reserve in Bitcoin.”
Steven Lubka, managing director at Bitcoin financial services firm Swan Bitcoin, echoed Terpin’s sentiment, emphasizing that Bitcoin is the only truly neutral global asset and the only cryptocurrency suitable for a U.S. Strategic Reserve.
He also noted that the primary risk with other cryptocurrencies isn’t to the U.S. but to individual investors who might interpret this as an endorsement of those assets.