President Donald Trump has announced the creation of a “crypto strategic reserve,” aiming to establish the US as the “Crypto Capital of the World.” The plan, unveiled on Truth Social on Sunday, would see the government holding bitcoin, ether, and other cryptocurrencies, including Solana, Cardano, and XRP.
Trump’s move sparked a sharp market reaction, with bitcoin surging more than 10% before falling back below $86,000 by Monday as broader financial markets declined. Other named assets, particularly Cardano, also saw significant gains.
However, the announcement has drawn criticism, including from prominent figures within the crypto industry. Much of the skepticism revolves around the inclusion of assets beyond bitcoin, as well as concerns over conflicts of interest and the broader implications of a government-backed crypto reserve.
Coinbase CEO Brian Armstrong questioned the decision to hold multiple cryptocurrencies instead of focusing solely on bitcoin as a “successor to gold.” Joe Lonsdale, co-founder of defense contractor Palantir and a Trump supporter, was more direct, calling it “not the proper, principled role of government” and objecting to taxpayer funds being used to support what he described as “crypto bro schemes.”
David Sacks, Trump’s so-called “crypto czar,” is also facing scrutiny over potential conflicts of interest. Sacks is a partner at venture capital firm Craft Ventures, which has invested in Bitwise, a crypto asset management company. An executive at Bitwise pointed out that its top holdings align closely with those selected for Trump’s reserve. Sacks has stated that he sold his personal crypto holdings and his position in Bitwise in January, but questions remain over the administration’s ties to the crypto industry.
The plan has also raised questions over funding and legality. The US government already holds over 200,000 bitcoin from past seizures, which some analysts suggest could form the basis of the reserve without requiring congressional approval. However, expanding the reserve to include multiple cryptocurrencies would likely require legislation. Wyoming Senator Cynthia Lummis, an advocate for bitcoin, had previously proposed a plan to grow the government’s bitcoin holdings, but her stance on the expanded reserve remains unclear.
Trump’s announcement has divided the crypto industry. While some executives welcomed the move as a step toward mainstream adoption, others expressed concern that it amounted to government interference in a sector that prides itself on decentralization.
A further test of the proposal’s viability may come on Friday, when the administration hosts a White House “crypto summit” to discuss details. Whether Trump can overcome skepticism—both from within the crypto world and his own political base—remains uncertain.
