A bombshell. That’s what Trump’s proposed crypto reserve has been for financial markets. The initial plan to include BTC, ETH, XRP, SOL, and ADA sent prices soaring. Then they crashed. Classic crypto, am I right?
But Bitwise CIO Matt Hougan thinks we’re all missing the point. The market reaction? “Misguided,” he says. Everyone’s fixated on which altcoins made the list instead of the bigger picture. We’re talking about the U.S. government recognizing cryptocurrency as a strategic asset. That’s huge.
Industry leaders are pushing back on the multi-coin approach. Bitwise CEO Hunter Horsley and others advocate for a Bitcoin-only reserve. Makes sense. Bitcoin is digital gold, a maturing store of value. The upcoming crypto summit on March 7 will likely address these concerns directly with industry heavyweights in attendance. The altcoin inclusion controversy might be short-lived anyway, with signals pointing to a Bitcoin-focused approach after the White House Crypto Summit on March 7, 2025.
This isn’t just about prices. It’s about politics. The GOP’s pro-crypto stance won them votes. Democrats’ hostility did them no favors. Future administrations will find it difficult to abandon these holdings once established. Crypto is becoming a politically strategic asset. Weird times.
Globally, this could trigger a domino effect. El Salvador, Bhutan, and Abu Dhabi already hold Bitcoin. If the U.S. jumps in, others will follow. Country-level buying means increased scarcity. You do the math.
Economic questions remain. How will the reserve be funded? What about inflation hedging? The BITCOIN Act proposes that the U.S. Treasury could accumulate up to 1 million bitcoin worth approximately $85 billion. The comparison to the Strategic Petroleum Reserve creation in 1975 is apt. Different asset, similar strategic thinking.
Regulatory changes are coming too. Bitcoin’s hard cap limit of 21 million coins makes it uniquely positioned as an inflation-resistant asset for national reserves. A Presidential Working Group on Digital Asset Markets. New legislation. Potentially softer SEC approaches.
The conversation shouldn’t be about whether SOL deserves a spot. It should be about Bitcoin’s emergence as a globally important monetary asset. Hougan’s right – miss this point and you’re missing everything. The crypto reserve isn’t just a policy proposal. It’s a paradigm shift.
