Pro-Trump Tech Community Reacts: Outrage Erupts Over President’s Controversial Crypto Reserve Announcement

David Sacks, who advises President Trump on technology and cryptocurrencies, was recently present when Trump signed important orders in the Oval Office. This moment illustrates the growing ties between Trump and the tech world, especially in crypto.

For his 2024 campaign, Trump sought financial backing from crypto leaders and promised to ease regulations, aiming to position the U.S. as a global hub for cryptocurrencies. Early in his tenure, he signed an order to create a digital asset working group and even pardoned Ross Ulbricht, the founder of Silk Road. Recently, the SEC halted its investigation into Coinbase, a significant move that excited many in the crypto community.

However, tensions are rising. Over the weekend, Trump announced the creation of a U.S. strategic crypto reserve that would include various digital currencies like bitcoin, ether, XRP, Solana’s SOL token, and Cardano’s ADA. While many in the crypto community only wanted a reserve for bitcoin, critics argue that adding riskier assets could misuse taxpayer funds. This concerns those advocating for lower government spending, especially amid a $2 trillion deficit.

Joe Lonsdale, a prominent investor, expressed his frustration, stating that taxing citizens for crypto projects feels wrong. On the other hand, David Sacks urged people not to jump to conclusions, suggesting that details of the proposal were still pending.

The White House did not comment on the public’s mixed reactions. Lonsdale was not alone in his criticism. Naval Ravikant, a notable tech investor, also raised concerns about taxpayers effectively becoming “exit liquidity” for certain cryptocurrencies. Vinny Lingham, another crypto influencer, shared a similar sentiment, stating that taxpayer money should not support volatile digital currencies during a time of significant deficit.

Billionaire Tyler Winklevoss, a significant Trump supporter, also disagreed with the inclusion of multiple cryptocurrencies in the reserve, arguing that only bitcoin should qualify. David Marcus, a former Facebook executive, indicated that many in the industry share this viewpoint.

Despite the backlash, a few voices within the crypto space defended Trump’s announcement. Michael Saylor, chairman of a major bitcoin-focused company, believed that including more cryptocurrencies could benefit the whole crypto sector. Jonathan Jachym from Kraken suggested that Trump is sticking to his commitment to digital assets.

The response to Trump’s proposal highlights the fragility of the tech and crypto alliance within his administration. As the outrage spreads, it showcases how quickly opinions can shift, especially concerning a critical part of his supporter base. This week, as Trump prepares for a Crypto Summit, all eyes will be on the details of his proposals and the reactions that follow.

Source link

Energy,Bitcoin,Cryptocurrency,Technology,FinTech,Donald J. Trump,Coinbase Global Inc,Bitcoin/USD Coinbase,Elon Musk,Microstrategy Inc,business news