The debate over the United States’ proposed Crypto Strategic Reserve has intensified following Donald Trump’s announcement, with industry leaders divided on which assets should be included. Others like Ripple’s Brad Garlinghouse and Cardano’s Charles Hoskinson advocate for a multi-token approach. Meanwhile, Australia rejected similar plans, and is rather prioritizing regulatory frameworks over accumulation.
Bitcoin Only True Reserve Asset?
The debate over which cryptocurrencies should be included in the United States’ proposed Crypto Strategic Reserve intensified after President Donald Trump’s announcement of the initiative. The reserve is expected to include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP, which attracted very differing opinions from key figures in the cryptocurrency space.
Gemini co-founder Tyler Winklevoss argued that only Bitcoin meets the criteria for being a US reserve asset, and stated that it is the only digital asset that qualifies as “hard money” and a “proven store of value like gold.” While he acknowledged that many other cryptocurrencies have their place in the market and are listed on Gemini, he insisted that a strategic reserve should stick to higher standards. His brother and Gemini co-founder Cameron Winklevoss agreed, and added that Ethereum could potentially be considered alongside Bitcoin, comparing them to America’s physical gold and oil reserves.
Coinbase CEO Brian Armstrong shared a similar perspective, and suggested that Bitcoin alone will be the best choice because of its simplicity and status as the most widely recognized and accepted digital asset. However, he also proposed an alternative approach, where the US could adopt a market cap-weighted index of cryptocurrencies to eliminate potential bias in asset selection.
Bitcoin advocate and Jan3 CEO Samson Mow took a stricter stance by arguing that only proof-of-work cryptocurrencies should be included in the reserve. He claimed that proof-of-stake assets, like Solana and Cardano, are susceptible to manipulation by foreign actors who could gain control simply by acquiring a large amount of the tokens. In his view, Bitcoin and potentially Litecoin will be the only suitable assets.
Despite the skepticism from Bitcoin maximalists, executives from Cardano and Ripple defended the inclusion of their respective tokens. Cardano’s Charles Hoskinson rejected criticism from gold advocate Peter Schiff, and said that XRP demonstrated resilience and maintained a strong community over the years. Ripple CEO Brad Garlinghouse also long supported a multi-token reserve.
The Crypto Strategic Reserve proposal was made after extensive discussions from Trump’s newly established Working Group on Digital Assets, which has been evaluating its structure and potential impact. Trump is also set to host the first White House Crypto Summit on March 7, where discussions will cover regulatory policies, stablecoin oversight, and broader crypto market dynamics.
Crypto Leaders Debate Trump’s Vision
Although Donald Trump’s plan to establish a strategic cryptocurrency reserve has been met with some optimism in the industry, experts still warn that it does not replace the need for clearer regulatory guidelines. Patrick Young, go-to-market lead at Web3 app Galxe, believes that while the initiative signals growing government interest in crypto, long-term growth will depend on regulatory clarity.
Trump’s announcement led to a short-term surge in crypto prices. Bitcoin briefly climbed above $90,000 before settling, and Cardano saw an even sharper reaction after gaining more than 40% in the first 24 hours after the news. According to Young, while crypto reserve developments can drive short-term price movements, industry-friendly regulations will play a much bigger role in sustaining long-term growth.
ADA’s price action over the past week (Source: CoinMarketCap)
Trump has taken steps toward a more pro-crypto regulatory environment by appointing leadership at key agencies like the Securities and Exchange Commission (SEC) that advanced a number of crypto-related applications that were previously stalled under the prior administration. Many in the industry are looking forward to new SEC leadership clarifying what constitutes a security, especially after the agency stated in February that meme coins are unlikely to fall under that classification.
(Source: SEC)
Despite the optimism, Trump’s inclusion of altcoins also attracted criticism, with some questioning whether the move could benefit his personal crypto holdings. Young pointed out that Trump accumulated various altcoins through entities under his control, which certainly raises serious concerns about potential conflicts of interest. Additionally, Adam O’Brien, CEO of Bitcoin Well, warned that including altcoins in a government reserve introduces centralization risks. He argued that if centralized assets are considered, traditional blue-chip stocks could just as easily be part of the reserve.
While the proposal stirred excitement and price movements, it also raised many questions about how a government-backed crypto reserve should be structured and what assets should be included.
Australia Rejects Crypto Reserve Plans
Australia’s government has no plans to establish a strategic cryptocurrency reserve, despite recent moves by the United States under President Donald Trump. While a number of US states are also considering adding cryptocurrency to their balance sheets, Australia’s current ruling party is focused on regulation rather than accumulation.
A spokesperson for Assistant Treasurer and Financial Services Minister Stephen Jones confirmed that the government is prioritizing a regulatory framework for digital asset platforms. The government has been engaging with industry stakeholders to develop a tailored regulatory approach.
It is, however, important to keep in mind that with Australia’s federal election looming before May 17, the political landscape may soon shift. A recent YouGov poll shows the opposition coalition holding a slight lead over the current Labor government. However, the coalition has not commented on whether it will consider a different stance on a crypto reserve.
Industry experts are still very divided on the practicality of a national crypto reserve. Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, believes that while the idea is popular, it carries a lot of risks. He pointed out that cryptocurrency price volatility could undermine the effectiveness of a strategic reserve, making it difficult to gain political traction. He also suggested that a more feasible approach might be the creation of a sovereign wealth fund with long-term crypto holdings.
Jonathon Miller, managing director for Australia at Kraken, argued that cryptocurrency has already been recognized as an investment-grade asset. He specifically pointed to the presence of crypto ETFs on major exchanges and investments from superannuation and sovereign wealth funds. Miller suggested that institutions like the Future Fund and even the Australian Treasury should consider allocating assets to crypto.
Meanwhile, regulatory oversight of the crypto industry in Australia is increasing. In December, Australian Transaction Reports and Analysis Center CEO Brendan Thomas announced that the agency will shift its focus toward crypto in 2025, including a crackdown on crypto ATM providers that may not comply with anti-money laundering laws. The Australian Securities and Investment Commission also released a consultation paper in December, proposing that many digital assets be classified as financial products. This will require firms to obtain proper licensing.
