Bitcoin Only? Trump’s Crypto Reserve Plan Divides Industry Leaders

Bitcoin Only? Trump’s Crypto Reserve Plan Divides Industry Leaders

TLDR

• Trump announced a Crypto Strategic Reserve plan to include Bitcoin, Ethereum, XRP, Solana, and Cardano
• Coinbase and Gemini CEOs argue only Bitcoin truly meets the criteria as a US reserve asset
• The announcement created a rift among Trump’s crypto supporters, with many opposing non-Bitcoin tokens
• Critics worry about spending taxpayer money on risky assets that could enrich select investors
• The White House will host its first Crypto Summit on March 7 to discuss policies and provide more details

President Donald Trump’s recently announced Crypto Strategic Reserve has sparked a heated debate among cryptocurrency industry leaders. The plan, which would include multiple digital currencies beyond Bitcoin, has created an unexpected divide among Trump’s tech supporters.

On March 3, Trump revealed plans to establish a Crypto Strategic Reserve that would include Bitcoin, Ethereum, XRP, Solana, and Cardano. This announcement came after weeks of evaluation from the President’s newly formed Working Group on Digital Assets.

The CEOs of major crypto exchanges quickly voiced their opinions on the plan. Coinbase CEO Brian Armstrong stated that “Just Bitcoin would probably be the best option,” describing it as the simplest cryptocurrency and a clear successor to gold.

Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:

1. Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold
2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S

— Brian Armstrong (@brian_armstrong) March 3, 2025

Tyler Winklevoss, CEO of Gemini exchange, echoed this sentiment. “Only one digital asset in the world right now meets the bar and that digital asset is Bitcoin,” he posted on X (formerly Twitter).

I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar and that digital asset is bitcoin.

Many of these assets are listed for trading on @Gemini and meet our rigorous… pic.twitter.com/q32qlaFDKJ

— Tyler Winklevoss (@tyler) March 3, 2025

Winklevoss explained his reasoning further. “Many of these assets are listed for trading on Gemini and meet our rigorous listing policy criteria, but with respect to a Strategic Reserve it is another standard. An asset needs to be hard money that is a proven store of value like gold.”

His twin brother Cameron Winklevoss suggested that only Bitcoin and possibly Ethereum satisfy the criteria for a “store of value reserve asset.” He compared these to America’s physical reserves of gold and oil.

Samson Mow, CEO of Bitcoin technology firm Jan3, took a different approach. He argued that only proof-of-work crypto assets should make up the reserve, suggesting Bitcoin and possibly Litecoin.

“Reserve assets must be based on Proof of Work to ensure fundamental integrity and assurance of immutability. Proof of Stake assets cannot be included because foreign actors can gain control simply by owning the asset,” Mow stated.

Supporters of the Multi-Token Approach

Not everyone opposes the multi-token approach. Cardano founder Charles Hoskinson defended the inclusion of XRP, calling it “great technology” that has “survived for a decade through many harsh cycles.”

Ripple CEO Brad Garlinghouse has also long supported a multi-token US crypto reserve similar to the one Trump proposed. His company’s XRP token was among those named in Trump’s announcement.

The debate has created the first real tension in the Trump-tech alliance. President Trump relied heavily on crypto executives and investors for campaign funding in 2024, promising to make the US “the crypto capital of the planet.”

Many of Trump’s tech supporters wanted only a Bitcoin reserve. They view Bitcoin as a smart way to invest in a decentralized currency that serves as an alternative to hard money.

Critics worry that expanding beyond Bitcoin means using taxpayer money to buy riskier assets with unproven value. Joe Lonsdale, founder of venture firm 8VC and a Trump supporter, wrote: “Taxation is theft. It should be kept to a minimum. It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”

David Sacks, Trump’s “White House AI and crypto czar,” defended the plan. “Nobody announced a tax or a spending program,” Sacks wrote in response to criticism. “Maybe you should wait to find out what’s actually being proposed.”

Crypto prices initially rallied after Trump’s announcement but later dropped significantly. Bitcoin fell about 9%, while Ethereum dropped 15%. XRP and Solana experienced even larger declines.

Despite the criticism, some industry players remain supportive. Michael Saylor, chairman of MicroStrategy, told CNBC:

“There’s no way to interpret this other than this is bullish for bitcoin and bullish for the entire U.S. crypto industry.”

The White House has scheduled its first Crypto Summit for March 7. Industry leaders will meet with the Working Group’s Bo Hines and Trump’s crypto advisor David Sacks to discuss regulatory policies, stablecoin oversight, and likely the details of the proposed reserve.

Even among critics, Trump doesn’t appear to be losing broader support for his overall agenda. The debate highlights how quickly a proposal can activate opposition when it touches on issues important to key supporters.

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