President Donald Trump took the cryptocurrency world by surprise Sunday, announcing a strategic reserve comprising of top coins such as Bitcoin BTC/USD and Ethereum ETH/USD.
As the market came to terms with the significant development, influential industry figures proposed suggestions and assessed the chances of its implementation.
What happened: Brian Armstrong, CEO of cryptocurrency exchange Coinbase, believed having just Bitcoin in the reserve would be the "best option," calling the asset a successor to gold.
Alternatively, Armstrong proposed that to maintain variety, a market capitalization-weighted mix of cryptocurrency assets could be used to keep the reserve “unbiased.”
The remarks were in response to White House A.I. & Crypto Czar David Sacks, who added to Trump's earlier announcement that Bitcoin, along with Ethereum, XRP XRP/USD, Solana SOL/USD, and Cardano ADA, would be used to set up a national cryptocurrency reserve.
Sacks said further details around the reserve would be revealed at the upcoming cryptocurrency summit at the White House.
The inclusion of other altcoins beside Bitcoin was intriguing, considering Bitcoin enthusiasts were expecting a Bitcoin-only reserve.
In fact, even staunch Bitcoin critic Peter Schiff questioned the inclusion of assets like XRP in the reserve.
See Also: Bitcoin Is Digital Gold But ‘What’s The Rationale For An XRP Reserve’, Asks Peter Schiff: Cardano Founder Charles Hoskinson Says Trump Made The Right Decision
Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and Chief Investment Officer at Maelstrom Fund, refused to read too much into the announcement.
"Nothing new here. Just words. Lmk when they get congressional approval to borrow money and/or revalue the gold price higher," Hayes stated.
Notably, a bill by Sen. Cynthia Lummis (R-Wy.) pushes for leveraging gold certificates held at the Federal Reserve's 12 banks to fund acquisitions of Bitcoin.
Hayes, who was still long on Bitcoin, said he won't buy anymore in the ongoing rally.
Price Action: At the time of writing, Bitcoin was exchanging hands at $91,981.49, up 7.27% in the last 24 hours, according to data from Benzinga Pro.
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