Decentralized Social Media and Crypto Reserves
Farcaster’s co-founder Dan Romero does not believe the US government will acquire more crypto tokens for its upcoming reserve. He suggests that strategic federal crypto holdings will primarily include assets seized from fines and illicit activities.
In a post on X, Romero stated Bitcoin will constitute 80% of the reserve, while altcoins like Ripple (XRP) and Cardano (ADA) may be added through in-kind tax payments or donations.
Predictions on Crypto Reserve Details
- Government will only keep seized assets; no new purchases.
- Bitcoin (BTC) will represent 80% of holdings.
- XRP and ADA may enter through in-kind tax payments or donations.
— Dan Romero (@dwr) March 3, 2025
As of March, US government cryptocurrencies include BTC, USDT, USDC, AUSDC, ETH, wBTC, BNB, and wBNB.
President Trump’s Crypto List
Romero’s predictions follow President Donald Trump listing five cryptocurrencies he wishes to see in the government’s holdings: XRP, Solana, Cardano, Bitcoin, and Ethereum. Trump claimed these coins would help elevate America to be the world’s crypto capital.
Before Trump’s announcement, many believed Bitcoin was the only cryptocurrency under consideration for reserves, leading to conflicts in public opinion regarding the addition of coins like ADA. Critics argued that such moves might pave the way for insider trading.
Stephen Ellis, a hotel owner, described ADA as a “ghost chain” and advocated for reserving only Bitcoin. Latif Peracha, a venture capitalist, warned that a government-held crypto reserve could threaten the dollar’s global status and called for focusing on stablecoins instead.
Zach Burks, CEO of NFT platform Mintable, completely supported Peracha’s views, asserting that Bitcoin is the only logical reserve asset.
> The crypto strategic reserve includes currencies like XRP, which have unlimited supply. A “reserve” typically refers to storing limited-supply assets like gold. — @bradymoritz on X
Conversely, some industry figures like Mena Theodorou, co-founder of Coinstash, view multi-asset reserves as a sign the administration takes crypto seriously.
Concerns Over Conflicts of Interest
Critics argue that Trump’s administration Crypto Czar, David Sacks, has industry ties that may create conflicts of interest. Sacks has urged critics to await official policy announcements before concluding anything.
Despite claims of divesting from crypto before his appointment, accusations persist that Sacks could be profiting from his position, prompting remarks about cronyism.
Sacks will host the inaugural White House Digital Currency Summit this Friday, where the administration is expected to clarify plans for a diversified federal crypto reserve.
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