Coinbase CEO Brian Armstrong has endorsed the idea of a Bitcoin-only strategic reserve for the U.S., following President Trump’s recent proposal for a Crypto Strategic Reserve.
Armstrong shared his thoughts in a response to White House AI and Crypto Czar David Sacks on X, outlining two potential models for structuring the reserve. The first model would focus exclusively on Bitcoin, positioning it as the modern-day equivalent of gold. This approach, Armstrong argued, would minimize government interference in the broader cryptocurrency market while bolstering Bitcoin’s status as a stable, transparent store of value.
The second proposal involved a more diversified approach, with assets allocated according to the market capitalization of each cryptocurrency. For instance, if Bitcoin accounts for 50% of the market and Ethereum 20%, the reserve would distribute assets in these proportions. This model would avoid favoritism and could adjust to market changes over time. However, Armstrong suggested that a Bitcoin-only reserve might offer greater consistency and alignment with the reserve’s core objectives.
Armstrong’s comments come as President Trump pushes forward with plans to establish a U.S. Crypto Strategic Reserve that would include Bitcoin, Ethereum, Solana, Cardano, and XRP. This initiative has sparked mixed reactions across the financial and cryptocurrency sectors.
Some supporters of the reserve see it as a bold step towards mainstream cryptocurrency adoption, potentially positioning the U.S. as a global leader in digital assets. However, critics, including BitMEX co-founder Arthur Hayes, have raised concerns, dismissing the move as political posturing. Hayes argued that without Congressional approval or a reevaluation of gold reserves, the government lacks the means to fund significant crypto purchases.
As the debate over the reserve’s structure intensifies, the cryptocurrency market has already reacted, rising by 8% since Trump’s announcement on March 2. Attention now shifts to the upcoming White House Crypto Summit and the administration’s next steps.
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