Donald Trump’s Crypto Reserve Leaves Industry Guessing as Analysts Question Economic Rationale

Key Takeaways

• President Trump’s proposed U.S. crypto reserve has sparked debate over its composition and economic rationale.
• Some industry leaders advocate for a Bitcoin-only reserve, arguing it is the only suitable asset.
• Analysts predict that Bitcoin will dominate the reserve, with altcoins playing a minor role.

Donald Trump’s plan to establish a U.S. crypto reserve has ignited both excitement and confusion within the industry.

While the reserve itself signals a historic shift in government recognition of digital assets, uncertainty over its composition has fueled debate.

Some argue for a Bitcoin-only reserve, while others support the inclusion of altcoins. Meanwhile, skeptics question the economic logic behind the plan, pointing to a lack of clarity on how the reserve will function.

With limited details and conflicting reports, the market remains on edge, awaiting clarity.

Uncertainty and Lack of Details

The administration has yet to provide specifics on how the reserve will be structured or which assets will be included.

The only official insight comes from Commerce Secretary Howard Lutnick, who confirmed Trump’s belief in a crypto reserve but stopped short of outlining concrete details.

Speculation intensified after Trump’s Truth Social post suggested that assets like XRP, Solana (SOL), and Cardano (ADA) could be part of the reserve, triggering backlash from Bitcoin supporters.

The lack of transparency has kept the market on edge, with Bitcoin (BTC) rallying 10% in response, briefly pushing total crypto market capitalization past $3 trillion.

Industry leaders are now looking to the upcoming White House crypto summit on March 7, where regulators and executives are expected to discuss the reserve’s framework.

Industry Backlash and Bitcoin-Only Advocacy

Since the announcement, many industry leaders have criticized the plan, arguing that Bitcoin should be the sole asset in the reserve.

Coinbase CEO Brian Armstrong and Gemini co-founder Cameron Winklevoss have both called for a Bitcoin-only reserve, arguing that Bitcoin is the only asset with the necessary decentralization and security for such a role.

Tyler Winklevoss echoed this sentiment, stating that while he has no issue with SOL, XRP, or ADA, they are not “suitable” reserve assets.

Economist Peter Schiff also weighed in, dismissing the inclusion of altcoins and arguing that Bitcoin alone has the necessary credibility.

INSEAD took a different stance , questioning the need for a crypto reserve. Antonio Fatas, an economics professor at INSEAD, criticized the concept, stating that there is no strong economic reason for the reserve.

“This is a wild world, I’m not sure there’s a strong economic reason here,” Fatas added. “You can go by size, and you can choose the biggest crypto, but I don’t know how you’d stop saying, why not two, five, or ten?”

Fatas also warned that prioritizing Bitcoin could undermine the U.S. dollar’s global strength, arguing that if the goal is to reinforce the dollar, increasing its prominence—not promoting a competing asset—is the logical move.

Altcoins’ Limited Role

Despite speculation, some analysts believe the market is overreacting to Trump’s announcement.

Bitwise CIO Matt Hougan argues that while the rollout has been messy, the overall news is bullish for crypto. He highlights three key points:

• Trump’s initial proposal is unlikely to be final—pushback from industry leaders will likely shape a more Bitcoin-focused reserve.
• The move could trigger a global domino effect, with other nations considering similar reserves.
• The U.S. government is unlikely to sell its crypto holdings, as political opposition to holding Bitcoin remains minimal.

Hougan and other analysts predict that Bitcoin will dominate the reserve, with altcoins playing only a minor role .

While their inclusion has stirred debate, analysts agree that the broader takeaway is the U.S. government’s recognition of crypto as a strategic asset—a development that could have far-reaching implications for global adoption.

“This is a game-changer,” Hougan said. “The market will come around to that view.”