Coinbase CEO Favors Bitcoin-only US Crypto Reserve

Brian Armstrong, CEO of Coinbase, believes a U.S. Crypto Reserve is a valuable initiative, but states that it should only hold Bitcoin. His comment came in response to David Sacks’ announcement regarding President Donald Trump’s proposed Crypto Reserve including Bitcoin, Ethereum, XRP, Solana, and Cardano.

Armstrong leans towards the Bitcoin-only strategy due to its simplicity and his belief in the cryptocurrency’s long-term value.

According to Armstrong, investing solely in Bitcoin “would probably be the best option” due to its simplicity and its “clear story as a successor to gold.”

Bitcoin Still Leads Market

Bitcoin is often referred to as “digital gold” due to its perceived ability to act as a store of value. It has gained widespread traction among investors as a long-term investment option, with some analysts predicting it could replace gold in this role over the next decade

Armstrong also suggested a “market cap weighted index of crypto assets” for those seeking greater variety. Coinbase CEO believes this approach would provide unbiased exposure to the overall cryptocurrency market. However, he ended his statement by reiterating that the Bitcoin-only option was the easiest.

On March 2, Trump said on Truth Social that his executive order directed the Presidential Working Group to incorporate XRP, SOL, and ADA into the U.S. Crypto Reserve.

Trump signed the order during his first inauguration week, and part of it included the establishment of a working group to evaluate the possibility of creating a strategic national digital assets stockpile. The order did not endorse any specific cryptocurrencies at the time.

In a separate statement on Sunday, the President clarified that the strategic crypto reserve would also have Bitcoin, Ethereum, and other valuable cryptocurrencies. He said these assets “will be at the heart” of the initiative.

According to David Sacks, Trump’s AI and crypto czar, Trump’s proposed strategic crypto reserve aligns with the January order. The initiative is part of Trump’s ongoing effort to position the U.S. as a global leader in blockchain and cryptocurrency.

Sacks has stated that more details about the plan will be disclosed at the first-ever White House crypto summit scheduled for March 7.

Trump’s Mention of XRP and ADA Sparks Controversy

The appearance of XRP and ADA in Trump’s U.S. crypto reserve announcement has sparked controversy among members of the crypto community, especially when he omitted BTC and ETH in his initial statement.

Critics argue that the inclusion of XRP and ADA, alongside Solana, prioritizes corporate-backed cryptocurrencies that some believe undermine the ethos of decentralization.

In particular, XRP, the cryptocurrency associated with Ripple Labs, is still facing legal battles with the SEC over whether it should be classified as a security. This has raised questions about its suitability for a government reserve.

Similarly, the inclusion of ADA has been criticized due to Cardano’s ongoing struggle with adoption and network activity. The volatility of both XRP and ADA has also raised concerns about their stability as long-term assets.

However, since the SEC is working toward resolving legal disputes with many crypto businesses in the past two weeks, there’s hope that the SEC vs. Ripple lawsuit will soon reach an agreement.

Some members speculate that lobbying efforts might influence the selection of these cryptocurrencies. Critics point out that Ripple Labs has been known for its active lobbying in support of pro-crypto congressional candidates, which might have played a role in XRP’s inclusion.

Gold advocate Peter Schiff, who has long been known for his anti-Bitcoin stance, said he accepts the “Bitcoin as digital gold” narrative even though he personally disagrees with it. However, the analyst is completely opposed to the idea of an XRP reserve.

“We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let’s create a Bitcoin reserve too. But what’s the rationale for an XRP reserve? Why the hell would we need that?” Schiff said.

Following Trump’s announcement, the prices of XRP and ADA skyrocketed. According to CoinGecko data, XRP jumped over 30% to nearly $3 hours after the announcement, while ADA shot up over 50%.

SOL surged over 25%, while BTC and ETH each posted a 10% gain.