- Bitcoin’s dominance fuels debate over the U.S. Crypto Strategic Reserve’s composition.
- Altcoin inclusion sparks criticism, raising concerns about stability and corporate influence.
- Market reacts positively as investors anticipate broader crypto adoption and regulation.
President Donald Trump’s announcement of a U.S. Crypto Strategic Reserve has stirred discussions across the financial and crypto sectors. The reserve will include Bitcoin and select altcoins, aligning with Trump’s Executive Order 14178, which aims to establish the United States as a leader in cryptocurrency adoption. However, industry experts remain divided on the composition of the reserve and its feasibility without congressional approval.
Bitcoin vs. Altcoins: Industry Leaders Weigh In
Coinbase CEO Brian Armstrong voiced his opinion, advocating for a Bitcoin-only reserve. He described Bitcoin as the “successor to gold,” arguing that its stability and market dominance make it the best choice.
Armstrong suggested that if diversity is required, a market cap-weighted index could ensure a balanced portfolio. His stance underscores Bitcoin’s reputation as the most secure and decentralized digital asset.
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
— Brian Armstrong (@brian_armstrong) March 3, 2025
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
Meanwhile, Arthur Hayes, co-founder of BitMEX, dismissed the announcement, citing the lack of congressional authorization. He argued that without approval to borrow funds or revalue gold reserves, the government lacks the means to execute the plan. Hayes’ skepticism reflects broader concerns over the financial logistics of purchasing cryptocurrencies for a national reserve.
Nothing new here. Just words. Lmk when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy #bitcoin and #shitcoins. https://t.co/Q06cDtL6h7
— Arthur Hayes (@CryptoHayes) March 3, 2025
Criticism Over Altcoin Inclusion
Trump’s decision to incorporate altcoins such as XRP, Solana (SOL), and Cardano (ADA) has drawn criticism from Bitcoin advocates. Samson Mow, CEO of JAN3, labeled the move a “sad day for America,” warning that including altcoins could compromise the integrity of a state-backed reserve. He also pointed out Trump’s previous involvement in launching a meme coin, questioning whether corporate interests influenced the selection process.
Other analysts have expressed reservations about adding altcoins, arguing that they function more like technology investments rather than stable financial assets. James Butterfill of CoinShares noted that Bitcoin’s unique attributes make it ideal for national reserves, while altcoins carry higher risks due to their evolving nature.
Market Response and Future Implications
Despite the controversy, the announcement triggered a positive reaction in the crypto market. Investors interpreted the development as a step toward greater regulatory clarity and institutional adoption. Federico Brokate of 21Shares believes the move could strengthen the U.S. position in digital asset innovation, attracting institutional players.
Additionally, Binance founder Changpeng Zhao supported the decision, predicting that more valuable cryptocurrencies would be added over time. He emphasized that other countries might follow suit, further legitimizing crypto in national economic strategies.
