Donald Trump has advocated for a "crypto strategic reserve" encompassing major cryptocurrencies like Bitcoin and Ethereum. This initiative aims to bolster the cryptocurrency industry by preventing government sell-offs and potentially increasing federal revenue through rising crypto values. The proposal has sparked debate, with crypto advocates supporting the measure to stimulate the industry and reduce national debt, whilst economists express worry about the volatility of crypto. Questions remain about the reserve's structure, including whether it would primarily consist of seized crypto or involve new acquisitions. Concerns have also arisen regarding potential conflicts of interest, particularly regarding the Commerce Secretary's ties to Tether. Trump's pro-crypto stance marks a shift, attracting support and financial backing from the crypto community, as he champions less restrictive regulation and domestic Bitcoin production.
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