Trump’s Cryptocurrency Reserve Proposal Sparks Backlash

US President Donald Trump’s proposal to create a cryptocurrency strategic reserve has sparked significant backlash. Financial expert and investor Anthony Pompliano called the idea “crazy.”

Speaking on Varney & Co, Pompliano, founder and CEO of Professional Capital Management, expressed skepticism regarding the plan’s inclusion of multiple cryptocurrencies. The proposed reserve reportedly aims to hold five or six different digital assets, which has been likened to a hedge fund.

Pompliano raised questions about how the government would allocate these assets, particularly balancing cryptocurrencies like Bitcoin and Solana:

> “How do you decide if you want more Solana and less Bitcoin? How do you do that? We don’t have all the details yet, but from what we know, it’s crazy.”

He noted that Trump’s initial campaign conversations centered on a Bitcoin-only reserve, emphasizing BTC’s limited supply and status as a global store of value. However, recent reports suggest the reserve could include several U.S.-based cryptocurrencies under the title “America first” crypto initiative.

> “Bitcoin is strategic because it has a limited supply, backed by the most powerful computing network, and is completely decentralized,” Pompliano explained. “If we’re adding random altcoins to the reserve, why not Tesla, GameStop, or hedge fund interests? That approach just turns it into speculation.”

Pompliano pointed out that Bitcoin reserves are gaining traction among nations like El Salvador, Bhutan, Russia, and the UAE. He noted that the Abu Dhabi Sovereign Wealth Fund has also begun purchasing Bitcoin. These countries treat Bitcoin similarly to gold, holding it as a strategic asset.

> “Countries are treating Bitcoin like gold and stockpiling it on their balance sheets. That’s the strategic value,” he stated.

Pompliano speculated that Trump’s inclusion of multiple cryptocurrencies could serve as a negotiating strategy, suggesting the initial proposal might be a starting point leading to a Bitcoin-only reserve.

> “If you think about The Art of the Deal, maybe he wants five or six assets but is only willing to negotiate down to Bitcoin,” he said, adding, “I don’t know if that’s what he’s doing, but I hope so.”

This is not investment advice.