Trump’s Crypto Reserve Proposal Faces Backlash from Key Industry Figures

President Donald Trump's proposal for a "cryptocurrency strategic reserve" has sparked strong skepticism within the crypto community, even from his past supporters.

The plan, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, aims to position the U.S. as a leader in crypto but has been criticized for potential government overreach in the market.

Prominent figures like Coinbase CEO Brian Armstrong have voiced concerns, arguing that the reserve should focus solely on Bitcoin, which he views as a digital successor to gold. Billionaire investor Joe Lonsdale also condemned the proposal, claiming government interference in crypto markets is inappropriate.

Even those close to Trump’s crypto advisor, David Sacks, have criticized the plan. Jason Calacanis, co-host of the “All-In” podcast, labeled it a “Trump Pump,” while Jeff Park from Bitwise called the decision a political miscalculation. As the debate heats up, it remains to be seen whether the plan will proceed or face further pushback.

Despite the growing criticism, Trump’s team has defended the initiative, emphasizing its potential to strengthen the U.S. dollar and attract international investment.

The idea of a government-backed cryptocurrency reserve is a bold step that highlights the administration’s commitment to adopting emerging technologies, though it also underscores the challenges of balancing innovation with market principles.