Trump’s ‘crypto strategic reserve’ proposal sparks controversy among supporters, raising concerns over ethics and potential conflicts of interest.
In Short
President Trump has announced a “crypto strategic reserve” to position the U.S. as the “Crypto Capital of the World,” which has drawn criticism from some supporters over potential benefits to private backers and high-risk cryptocurrencies. Following the announcement, cryptocurrency prices surged, and concerns about conflicts of interest and the inclusion of various tokens emerged within the crypto community.
President Donald Trump has announced plans for a “crypto strategic reserve,” similar to existing U.S. reserves for gold and oil. This initiative is spearheaded by a newly formed digital assets working group.
However, the proposal has sparked criticism from some of Trump’s supporters within the crypto industry.
Critics are concerned that the proposed reserve includes high-risk cryptocurrencies, benefiting certain private backers.
Many believe this move favors crypto holders over American taxpayers, according to digital asset researcher Molly White. Following the announcement, prices of numerous cryptocurrencies surged.
Crypto capital
On social media, Trump expressed his intent to position the U.S. as the “Crypto Capital of the World.”
A White House spokesperson referred inquiries to a social media post by “crypto czar” David Sacks, who stated that further details would be revealed at an upcoming crypto summit.
Previously, the idea of a crypto reserve was mentioned by Trump, initially focused on Bitcoin.
Now, it appears the reserve could encompass various tokens, including ripple, solana, and cardano, alongside Bitcoin and ether.
Some in the crypto community have resisted the inclusion of tokens aside from Bitcoin.
Concerns regarding potential conflicts of interest have surfaced, particularly involving advisers with financial ties to cryptocurrencies.
