Trump’s US Crypto Reserve Hit: The Unresolved Questions and Unexpected Backlash!

On March 2, 2025, pro-crypto US President Donald Trump announced the creation of a strategic US Crypto Reserve in a social media platform called Truth Social. The crypto market rebounded a few minutes after the announcement, with prices soaring high. But the same day, a ripple sell-off triggered, and the market crashed. 

Probing the reasons behind the dump revealed that market sentiment and uncertainty were the primary causes of the crash. For one, the announcement was not official, and Trump’s crypto reserve will need a Congress vote, which is time-consuming.  Also, the inclusion of altcoins invited troubles. Beyond that, the details are sketchy. Here are the unresolved questions that led to the unexpected backlash!

Why is Trump’s Crypto Reserve facing a backlash?

Trump’s US Crypto Reserve will include XRP, Solana, and Cardano’s ADA, apart from the major key players Bitcoin and Ethereum. In the expert’s opinion, the initiative should have limited the reserve to Bitcoin – rather than risking unwanted market manipulation. Crypto analysts believe that including multiple crypto coins complicates the initiative. 

These unwanted inclusions invited troubles to the initiative. The world crypto leaders and billionaires are questioning the approach.

The billionaire and Palantir co-founder Joe Lonsdale was direct in his opposition. Criticisms came from Trump’s advisory council as well. The Crypto Czar David Sacks labelled the initiative an insane grit!

Will the States Embrace the Crypto Reserve or Resist Federal Influence?

Let us assume that the crypto reserve has crossed all the barriers: Congress voting, harmony in crypto inclusions, regulation, etc. The question is, will the states adopt the reserve? Surprisingly Yes! Around 22 states are considering the creation of their own Crypto Reserve. They have bills proposing a Bitcoin Reserve. 

The State of Utah is two steps away. Maryland has already proposed a Strategic Bitcoin Reserve. Then why the hurly-burly around Trump’s Crypto Reserve plan? A cautious observation discloses that while the states focus on creating a Bitcoin reserve, Trump’s initiative includes other coins! Thus, the problem is not about making a reserve. But in the coins held by the reserve!

Why Are Altcoins a Controversial Addition to the US Crypto Reserve?

There are logical reasons to include BTC in the reserve. Unlike other crypto coins, Bitcoin is an undisputed value store called “Digital gold.” However, this is not the case with the altcoins. Take Cardano, for example. It is best known to support dApps (Decentralised Applications) but doesn’t have ETFs. Also, it is not accepted by traditional financial systems. How many Cardano ATMs have you come across? There are more than 38,000 Bitcoin ATMs globally! 

While altcoins are just sprouting their first leaf, Bitcoin has deep-rooted bearing fruits and flowers for years and has a proven history of beneficial harvests!

Takeaway Message

Trump’s Crypto Reserve has ignited a heated debate, not over the concept of a reserve itself, but its composition. While Bitcoin is a universally recognised store of value, including altcoins introduces uncertainty, regulatory challenges, and potential market instability.

The backlash from industry leaders and policymakers underscores the risks of diversifying beyond BTC. Meanwhile, individual states are already moving ahead with their own Bitcoin reserves, signalling that the idea isn’t entirely outlandish—just the execution. As the debate unfolds, one thing remains clear: the future of the US Crypto Reserve hinges on trust, regulation, and a strategic approach to adoption.