Since President Trump confirmed plans for a US crypto reserve, speculation has been rampant about which assets will be included. While Bitcoin is expected to dominate, many believe that altcoins like XRP, Solana, Ethereum, and Cardano could also be part of the reserve. Farcaster co-founder Dan Romero has shared insights into how the government might manage these assets.
No New Purchases—Only Seized Crypto
Romero believes the Trump administration will not buy new crypto but will instead use only assets that have been seized. He predicts Bitcoin will make up about 80% of the reserve due to its global acceptance and dominance.
https://twitter.com/dwr/status/1896599382260400482
However, XRP and Cardano’s ADA could serve a different purpose. Romero suggests they might be used for in-kind tax payments or donations, hinting at potential government partnerships with Ripple and Cardano.
Critics Push for a Bitcoin-Only Reserve
Not everyone agrees with including altcoins. A CNBC report highlights skepticism within the crypto community. Gemini co-founder Tyler Winklevoss argued that only Bitcoin meets the criteria for a strategic reserve. Economist Peter Schiff also questioned the decision to include other assets.
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
1. Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold
2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S— Brian Armstrong (@brian_armstrong) March 3, 2025
Coinbase CEO Brian Armstrong also wants a Bitcoin-only reserve. He sees Bitcoin as a decentralized, gold-like asset. However, he said that adding other cryptocurrencies is seen as risky and a misuse of taxpayer money. Critics, including tech investor Joe Lonsdale, argue that the government shouldn’t be spending on speculative assets while running a massive deficit.
Anthony Pompliano, a strong Trump supporter in the crypto