Criticism From Bitwise on US Crypto Reserve for Including XRP SOL ADA

A prominent crypto investment firm, Bitwise has criticized the decision by the government of United States to include Solana (SOL), and Cardano (ADA) in the proposed Strategic Crypto Reserve.

The criticism centers on the inclusion of altcoins, which many believe complicates the initiative and could lead to perceptions of government favoritism.

Jeff Park, head of Alpha Strategies at Bitwise, highlighted that including altcoins with nascent use cases could create the perception of insider dealing, even if the selection was objective. This is seen as politically negative, potentially undermining the credibility of the reserve.

Bitwise CEO Hunter Horsley emphasized that Bitcoin is the undisputed store of value in the digital age and should be the primary focus of a strategic reserve. He argued that while many crypto assets have merits, a reserve should prioritize reliability and stability.

Critics argue that including XRP, SOL, and ADA introduces unnecessary risks and complexities. For example, Ripple controls a significant portion of XRP's circulating supply, which could further centralize control if the government were to purchase more XRP.

Some observers suggest that Trump's inclusion of altcoins might be a negotiation tactic to secure a reserve primarily focused on Bitcoin and Ethereum. This approach could be looked as leveraging extreme demands to achieve a more modest goal.

Overall, Bitwise and other industry leaders prefer a more straightforward approach, focusing on established assets like Bitcoin, which is widely regarded as a reliable store of value in the digital asset space.

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