Trump’s recent announcement of a US Crypto Strategic Reserve has sparked a lively debate in the crypto world. While some see it as a bullish signal, others are far more skeptical.
Skepticism from Crypto Leaders
Arthur Hayes, the founder of BitMEX, wasn’t impressed. He called the announcement “just words” on X (formerly Twitter), pointing out that it needs Congressional approval to actually happen. He argued that without that approval, the government has no money to buy Bitcoin or other cryptocurrencies. He basically said, “Show me the money!”
Ben Zhou, CEO of Bybit, echoed Hayes’ skepticism, simply replying “exactly” to Hayes’ post.
Funding the Reserve: A Big Question
The biggest hurdle? Funding. Analysts like Ali Martinez highlighted the long and complicated process: Congress needs to pass legislation, allocate funds, and relevant agencies like the SEC, CFTC, and Treasury need to create a compliance framework. He even wondered if the market’s initial positive reaction would reverse if Congress doesn’t approve the plan.
Tony Sycamore, an IG market analyst, pointed out another issue: where would the money come from? He suggested it could come from taxpayers (considering the US’s massive debt) or from crypto seized from criminals. However, he argued that using seized crypto isn’t really “new money” entering the market; it’s just a transfer of assets.
A “Crypto Arms Race”?
Despite the skepticism, some believe Trump’s announcement is significant. They see it as a declaration of a “crypto arms race,” with the US signaling its intention to become a major player in the crypto space, prioritizing Bitcoin and Ethereum.
The Bottom Line
Trump’s announcement certainly created a buzz, but its impact depends entirely on whether it translates into concrete action. Until Congress approves funding and a framework is established, it remains to be seen whether this “Crypto Reserve” will be anything more than a headline.
