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crypto.news 2025-03-03 03:45:42

Coinbase CEO: A Bitcoin-only strategic reserve is the best choice for the U.S.

Coinbase CEO Brian Armstrong has weighed in on President Trump’s Crypto Strategic Reserve, suggesting that Bitcoin alone would be the best option. Responding to White House AI and Crypto Czar David Sacks on X, Armstrong outlined two potential strategies for structuring the reserve. The first strategy would treat Bitcoin ( BTC ) as the modern equivalent of gold, focusing solely on it. 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 This would minimize government interference in the larger cryptocurrency market and strengthen Bitcoin’s position as a store of value, offering stability, transparency, and simplicity. The second approach would distribute assets based on the respective market sizes of each coin using a market cap-weighted index. For example, if Bitcoin makes up 50% of the total crypto market and Ethereum ( ETH ) 20%, then the reserve would allocate its assets in proportion to these figures. Favoritism would be avoided, and the reserve may eventually reflect changes in the market. Armstrong did, however, suggest that a Bitcoin-only approach might be more feasible and consistent with the reserve’s objective. You might also like: VanEck research reveals if Strategic Bitcoin Reserve can pay off US debt by 2049 His remarks coincide with Trump’s recent push to proceed with creating a strategic cryptocurrency reserve that will comprise BTC, ETH, Solana ( SOL ), Cardano ( ADA ), and XRP ( XRP ). The decision has sparked debate among the financial and cryptocurrency communities, with differing views on its ramifications. Some crypto advocates have praised the reserve as a landmark move toward widespread adoption, arguing that it will boost investment and establish the U.S. as a leader in digital assets worldwide. Others, including BitMEX co-founder Arthur Hayes, remain skeptical. Hayes dismissed the announcement as political posturing, stating that without congressional approval or a revaluation of gold, the government has no way to fund large-scale crypto purchases. Nothing new here. Just words. Lmk when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy #bitcoin and #shitcoins . https://t.co/Q06cDtL6h7 — Arthur Hayes (@CryptoHayes) March 3, 2025 As Trump gets ready to host the White House Crypto Summit, the debate over the structure of the reserve is growing more intense. Following his Mar. 2 announcement of a crypto strategic reserve, the cryptocurrency market has already risen by 8%, and all eyes are now on the administration’s next move. Read more: U.S. States ahead of Fed on Bitcoin reserve path: Lummis

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