The cryptocurrency sector, often unified in its push against traditional financial systems, is facing a deepening rift over President Donald Trump‘s proposal to create a U.S. strategic reserve of digital assets.
What Happened: Unveiled in early March, the plan as ignited fierce debate over its implications for fiscal responsibility, economic equity, and the very ethos of the crypto movement.
As Trump’s Department of Government Efficiency (DOGE), led by Elon Musk, simultaneously pursues trillions in spending cuts, the contrast between these policies has sharpened divisions within the industry, pitting advocates of government-backed crypto adoption against those wary of using public funds to prop up volatile, unproven assets.
Trump’s announcement, made via Truth Social on Sunday, named five cryptocurrencies—Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Ripple (CRYPTO: XRP), Solana (CRYPTO: SOL), and Cardano (CRYPTO: ADAA)—as candidates for the reserve.
According to data from CoinGecko, Bitcoin surged over 20% from the previous week’s lows to $92,000 by Monday, with other listed tokens also rallying sharply.
The task force, established via executive order on Trump’s Inauguration Day, Jan. 20, aims to cut $1 trillion from the deficit, according to Musk’s statements in a Fox News interview with Sean Hannity on Feb. 25.
DOGE has already claimed $55 billion in savings by Feb. 24, per its official website, targeting programs like USAID and DEI contracts at the Treasury.
Yet, the juxtaposition of these cuts with a plan to buy cryptocurrencies—assets known for wild price swings—has fueled accusations of inconsistency.
“The …
