The digital assets space has largely welcomed Trump’s mission to boost the industry, which faced heavy regulatory scrutiny under the Biden administration.
But Trump's recent announcement to form a cryptocurrency reserve with assets other than bitcoin — the most valuable cryptocurrency — surprised even those who could benefit from the plan.
Anthony Pompliano, founder and CEO of investment firm Professional Capital Management, called the suggested plan an “unforced error that will be regretted in the future.”
Pompliano noted in a lengthy blog post that his criticism comes even as “someone who stands to substantially benefit financially” from Trump’s announcement.
Trump on Sunday offered new details about a crypto reserve, writing online that it will “elevate this industry after years of corrupt attacks by the Biden administration.”
“Which is why my Executive Order on Digitial Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL [Solana] and ADA [Cardano]”, Trump wrote on Truth Social.
Online users were quick to point out his post made no mention of bitcoin, despite a pledge he made last July to create a strategic bitcoin reserve.
The president clarified a few minutes later and wrote, “And, obviously BTC [bitcoin] and ETH [Ethereum], as other valuable cryptocurrencies, will be at the heart of the Reserve.”
“I also love Bitcoin and Ethereum!” Trump added.
“The United States is not in the business of buying stocks or other investment assets,” Pompliano argued, adding later, “The U.S. has strategic reserves of assets like gold, oil, cheese and other assets that are important to the strength of our balance sheet or have national importance.”
“Crypto tokens like ETH, SOL, XRP and ADA don’t fit that framework,” he continued, suggesting the tokens are more like technology stocks rather than natural commodities or hard money.
Cameron and Tyler Winklevoss, the co-founders of cryptocurrency exchange Gemini, echoed the sentiment against any reserve that includes currencies other than bitcoin.
The brothers each donated $1 million in bitcoin to Trump’s reelection campaign due to his support for the industry.
Tyler Winklevoss said on Monday bitcoin is the only digital asset in the world that currently meets the bar for a strategic reserve, writing
an “asset needs to be hard money that is a proven value like gold.”
Cameron also advocated for a bitcoin reserve, calling it a “must.”
Read more in a full report Wednesday morning at TheHill.com.
