President Donald Trump’s Sunday crypto reserve announcement has drawn some notable criticism from notable leaders within the crypto and tech industry, who made up his supporters during the presidential campaigns.
According to a post on social media platform X by Brian Armstrong, the richest American within the crypto space with a net worth of $9.6 billion and a strong supporter of Donald Trump, only Bitcoin deserved a spot in the strategic crypto reserve as a potential “successor to gold” for the government.
Backlash from Crypto Supporters
US President Donald Trump revealed on March 2, 2025, through an executive order that he had told his administration to begin creating a national crypto reserve to solidify the country’s leadership within the crypto space. According to the President’s statement, the crypto reserve would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
Some of Donald Trump’s tech allies have reacted negatively to including altcoins since most expected the strategic crypto reserve to focus on Bitcoin alone. According to critics, the inclusion of altcoins would complicate the crypto reserve initiative and cause unintended market biases.
Including Altcoins Raises Concerns
The Head of Alpha Strategies at Bitwise, Jeff Park, is critical of the decision and has called it a grave political miscalculation, warning that including altcoins could raise concerns about Trump’s administration’s favoritism, whether the selection was made objectively or not. Park stated:
“[The] big problem here is optics. When you include altcoins whose use case is too nascent to be deemed ‘nationally strategic,’ you risk the assumption of inside dealing even if it were patently false. This is politically negative, even among a subset of crypto enthusiasts.”
Another harsh criticism came from Joe Lonsdale, an unabashed supporter of Donald Trump, the billionaire co-founder of AI-focused defense contractor Palantir. In his reply to Trump’s post, he stated:
“It should be kept to a minimum. It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”
To the Defense of Trump
Coming to the defense of Donald following the skepticism associated with including altcoins in the crypto reserve was venture capitalist Davis Sacks, who has been tapped to become the White House artificial intelligence and crypto czar. Sacks specifically took exception to Lonsdale’s comment, saying it was premature for anyone to jump to conclusions. It should be noted that Lonsdale and Sacks belong to the same conversation circle within the tech world, with other prominent members being Peter Thiel and Elon Musk. Sacks stated on X:
“Nobody announced a tax or a spending program […] maybe you should wait to find out what’s being proposed.”
Winklevoss Roots for Bitcoin
Another Trump supporter who joined the Monday chorus of criticisms is Bitcoin investor Tyler Winklevoss. Last November, the Gemini exchange CEO asked Americans to vote for Trump if they cared about “the future of crypto, free speech, justice, liberty, and democracy.” However, commenting on the inclusion of altcoins, he stated:
“I have nothing against XRP, SOL, or ADA, but I do not think they are suitable for a Strategic Reserve […] only one digital asset in the world right now meets the bar, and that digital asset is bitcoin.”
Conclusion
Advertisement Banner
The reactions that have followed the inclusion of altcoins in the proposed crypto reserve come only a few weeks into Trump’s administration, showing how fast statements can activate the outrage machine. It would be interesting to see how the White House Summit scheduled for Friday in the White House will go, considering that investors are eagerly awaiting the outcome.
Frequently Asked Questions (FAQs)
What is Trump’s crypto reserve?
On Sunday, the US President announced on his Truth Social platform that the federal government would establish a reserve by stockpiling five tokens.
What coins are in the crypto reserve?
Trump revealed that the “Crypto Strategic Reserve” will include Bitcoin, Ethereum, XRP, Solana, and Cardano.
How would a reserve benefit the crypto industry?
Supporters believe the reserve could legitimize crypto as a diversification strategy as the industry tries to solidify its standing in traditional market structures.
Does Trump have the authority to create a crypto reserve?
The President does not necessarily have the authority to modify the federal budget via an executive order.
Appendix: Glossary to Key Terms
Executive order: A rule or order issued by the President to an executive branch of the government and having the force of law
Crypto reserve: A national stockpile of digital assets created under a federal regulatory framework on Digital Asset Markets
Bitcoin: A digital currency that operates free of any central control or the oversight of banks or governments
Altcoin: A cryptocurrency that is not Bitcoin
References
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
For advertising inquiries, please email . [email protected] or Telegram
