- Coinbase CEO Brian Armstrong suggested an alternative of a market-cap-weighted index for diversification but maintained that Bitcoin alone would be the “easiest” and clearest option for Us strategic reserve.
- President Trump emphasized positioning digital assets as a strategic national asset, framing the move as a reversal of prior administrations’ policies.
When reacting to the recent Crypto Strategic Reserve announcement by U.S. President Donald Trump, Coinbase CEO has proposed that Bitcoin could be the single best option for the program. The proposal suggesting five prominent cryptocurrencies- Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) is at the center of debates within the crypto world regarding the most suitable method of asset allocation, as highlighted in our previous article.
Coinbase CEO Advocates For Bitcoin-Only Reserve
The CEO of Coinbase shared his outlook on X after responding to what David Sacks, the appointed U.S. Crypto and AI Czar, had to say. Sacks had noted that Trump’s allegiance to making America a digital assets leader included connection of the strategic reserve to Executive Order 14178.
“President Trump has announced a Crypto Strategic Reserve consisting of Bitcoin and other top cryptocurrencies,” according to a post on X by Sacks. He added,
This is consistent with his week-one E.O. 14178. President Trump is keeping his promise to make the U.S. the ‘Crypto Capital of the World.’ More to come at the Summit.”
The Coinbase CEO admitted the importance of the project and said he was receptive to exploring the structure of the reserve further. Nonetheless, he favored a Bitcoin-based approach, noting its simplicity and proven reputation as a digital equivalent of gold. “Just Bitcoin would probably be the best option—simplest, and clear story as successor to gold,” he said on X.
Although he preferred a Bitcoin-only approach, the Coinbase CEO also weighed an alternative that would allocate holdings according to market capitalization. “If folks wanted more variety, you could do a market cap-weighted index of crypto assets to keep it unbiased,” he proposed. But he stuck to his guns, saying that the initial choice, restricting the reserve to Bitcoin alone, was probably the “easiest” way to go. Last month, Armstrong also predicted that Bitcoin adoption could reach billions by the end of 2030.
Market Reaction To Trump’s Crypto Reserve News
Trump’s declaration of the reserve drove cryptocurrency prices through the roof, with Cardano seeing a sudden 70% rise, while XRP and Solana increased by over 30% and 20%, respectively. Bitcoin and Ethereum also appreciated, rising over 10% after the news.
The launch of a government-sponsored digital asset reserve is a major change in the U.S. government’s strategy toward crypto and Web3 space. The digital assets are, under Trump, being positioned as a strategic national asset, something he presented as a reversal of what he described as “corrupt attacks” on the space by his predecessor. “I will make sure the U.S. is the Crypto Capital of the World,” the president stated.
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