Coinbase CEO Brian Armstrong has weighed in on President Trump’s Crypto Strategic Reserve, suggesting that Bitcoin alone can be the most suitable choice.
Responding to White Home AI and Crypto Czar David Sacks on X, Armstrong outlined two potential methods for structuring the reserve. The primary technique would deal with Bitcoin (BTC) as the fashionable equal of gold, focusing solely on it.
This could reduce authorities interference within the bigger cryptocurrency market and strengthen Bitcoin’s place as a retailer of worth, providing stability, transparency, and ease.
The second method would distribute property based mostly on the respective market sizes of every coin utilizing a market cap-weighted index. For instance, if Bitcoin makes up 50% of the whole crypto market and Ethereum (ETH) 20%, then the reserve would allocate its property in proportion to those figures.
Favoritism can be averted, and the reserve could finally replicate modifications available in the market. Armstrong did, nevertheless, counsel {that a} Bitcoin-only method is perhaps extra possible and in step with the reserve’s goal.
His remarks coincide with Trump’s latest push to proceed with making a strategic cryptocurrency reserve that may comprise BTC, ETH, Solana (SOL), Cardano (ADA), and XRP (XRP). The choice has sparked debate among the many monetary and cryptocurrency communities, with differing views on its ramifications.
Some crypto advocates have praised the reserve as a landmark transfer towards widespread adoption, arguing that it’ll increase funding and set up the U.S. as a pacesetter in digital property worldwide.
Others, together with BitMEX co-founder Arthur Hayes, stay skeptical. Hayes dismissed the announcement as political posturing, stating that with out congressional approval or a revaluation of gold, the federal government has no method to fund large-scale crypto purchases.
As Trump will get able to host the White Home Crypto Summit, the talk over the construction of the reserve is rising extra intense. Following his Mar. 2 announcement of a crypto strategic reserve, the cryptocurrency market has already risen by 8%, and all eyes at the moment are on the administration’s subsequent transfer.