Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

A key part of the announcement is the list of cryptocurrencies Trump is considering for the national reserve. Ripple (XRP), Solana (SOL), and Cardano (ADA) were among the first he mentioned.

Actually, in his initial post about the crypto reserve, these three coins were named. In a follow-up post, Trump added: “Obviously BTC and ETH, as other valuable Cryptocurrencies will be the heart of the Reserve.”

With this plan, Trump moves forward with his vision of making the U.S. the Crypto Capital of the World, as he put it.

However, many questions remain.

First, it’s unclear if Trump’s idea will materialize, as the Presidential Working Group is still evaluating its feasibility. It’s also uncertain how the reserve would function and whether it would require congressional approval.

Another major question is the fund’s long-term impact on the market. Following Trump’s announcement, cryptocurrencies surged in value- Bitcoin rebounded to $93,000 after dropping to $85,000, and the total crypto market cap recovered to $3 trillion.

What Does the Community Think of Trump’s Crypto Reserve Policy? Depends Who You Ask

If you ask Coinbase CEO Brian Armstrong, Bitcoin would probably be the best option. In an X post, Armstrong says that as a successor to gold, Bitcoin has a clear narrative and is the simplest choice for a crypto reserve.

For more variety, he proposed a market cap-weighted index of crypto assets. That said, Armstrong emphasized that Bitcoin is likely the easiest option.

Compared to Bitcoin maxis, who see BTC as the one and only true crypto, hearing this take from Armstrong was pretty interesting. He’s not against other cryptocurrencies, yet he still leaned toward Bitcoin as the simplest choice.

And then there’s Peter Schiff – yes, the same Peter Schiff who’s been one of Bitcoin’s loudest critics for years. Surprisingly, he backed the idea of a Bitcoin-only reserve. In a tweet, he admitted he gets the logic behind it, calling BTC “digital gold” and throwing shade at the idea of an XRP reserve: What is an XRP reserve for?

But don’t get it twisted—Schiff hasn’t suddenly turned into a Bitcoin fan. He made it clear he still doesn’t support the plan at all. In another post, he argued that the government shouldn’t be picking winners and losers or propping up the market with taxpayer money.

Not everyone thinks the crypto reserve plan is a bad idea. Altcoiners are all for it, hyping up the fact that more of their favorite coins are getting recognition. Some are even saying this could be the start of altseason.

Investor Raoul Pal seems to agree. He says the U.S. government is basically signaling that it’s about to kickstart the alt season itself.

Concerns Over Price Manipulation Through the Strategic Crypto Reserve 

One of the key risks critics highlight regarding the crypto reserve is market volatility. If prices drop, the government could face significant losses.

YouTuber John Coogan referred to the initiative as a “crypto gambling reserve.”

Political commentator Krystal Ball described the reserve as a historic heist designed to enrich billionaires and government allies. She specifically mentioned crypto Czar David Sacks as an investor in the cryptocurrencies Trump said would be included in the reserve. However, Sacks stated that he had sold all of his crypto holdings before the start of the administration.

Details about the reserve remain unclear. Key questions include how it will be structured, how risks will be managed, whether it will focus solely on Bitcoin, and which cryptocurrencies may be included.