Following President Donald Trump’s announcement of a US Crypto Strategic Reserve, prominent figures in the crypto space have voiced skepticism over its feasibility. BitMEX founder Arthur Hayes was among the first to challenge the move, calling it “just words” without real backing.
On X (formerly Twitter), Hayes stated that the US government lacks the funds to support a crypto reserve without Congressional approval to either borrow money or increase the gold price. “Without that, they have no money to buy #bitcoin and #shitcoins,” he added.
His comments have fueled wider concerns in the industry, with several analysts and executives questioning how the strategic crypto reserve would be funded and whether it would become a reality.
Trump’s Crypto Reserve: Grand Plan or Market Hype?
President Trump announced the creation of a US Crypto Strategic Reserve as part of efforts to position the United States as the “Crypto Capital of the World.” This follows his January 23 executive order titled “Strengthening American Leadership in Digital Financial Technology.”
The reserve will include top US-origin cryptocurrencies such as Solana (SOL), Cardano (ADA), and XRP. Trump later clarified that Bitcoin (BTC) and Ethereum (ETH) would also be “at the heart of the reserve.”
White House AI and Crypto Czar David Sacks reinforced the announcement, calling it consistent with Executive Order 14178, which promotes digital asset adoption and blockchain innovation. He also hinted that further developments will be revealed at the upcoming White House Crypto Summit.
Funding Challenges and Industry Concerns
Despite the excitement surrounding the US Crypto Strategic Reserve, many industry leaders and analysts remain skeptical.
- Ali Martinez, a well-known crypto market analyst, stated that such a reserve “wouldn’t become a reality overnight”, as Congress must first draft, debate, and pass legislation.
- Ben Zhou, CEO of Bybit, echoed Arthur Hayes’ skepticism, agreeing that the government lacks a clear funding plan.
- Tony Sycamore, an IG market analyst, noted that the US government’s $36 trillion debt makes it unlikely that taxpayer funds would be allocated to buy digital assets. Instead, he suggested that the government may use Bitcoin and other cryptocurrencies seized from criminal activities, such as the 144,000 BTC confiscated from Silk Road in 2013.
Is a US Crypto Reserve Bullish for the Market?
Sycamore warned that using seized crypto assets rather than acquiring new Bitcoin would not drive market growth. “It’s just a transfer between accounts rather than new buying entering the market,” he explained.
However, some crypto enthusiasts argue that Trump’s move is still significant. They believe the announcement signals the start of a global ‘crypto arms race,’ with BTC and ETH emerging as the most important digital assets in international competition.
As the White House Crypto Summit approaches, market participants will be watching closely to see whether Trump’s strategic reserve plan holds weight or remains political rhetoric.
