US President Donald Trump announced the creation of a government-backed cryptocurrency reserve, including Bitcoin, Ethereum, XRP, Solana, and Cardano, prompting mixed reactions in the industry.
Trump's Announcement
US President Donald Trump announced plans to establish a government-backed reserve including cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano. He claimed this would help the United States become the 'Crypto Capital of the World'.
Industry Reaction
The announcement initially triggered a spike in cryptocurrency trading; however, markets cooled on Monday amid concerns about the implications of the plan.
Criticism of the Plan
Criticism of the plan came from those who were part of Trump's support base in the previous election cycle. Coinbase CEO Brian Armstrong expressed skepticism, suggesting the reserve focus solely on Bitcoin. Billionaire Joe Lonsdale criticized the plan, questioning the role of government in crypto markets. Figures connected to Trump's crypto chief, David Sacks, also expressed disapproval, labeling Trump's decision to include multiple cryptocurrencies a 'political miscalculation'.
Trump's announcement of a strategic US cryptocurrency reserve has sparked sharp debates and concerns within the crypto industry, highlighting the ongoing discussion about the role of government in managing cryptocurrencies.
