The relationship between Donald Trump and the tech industry is experiencing a phase of tension, primarily stemming from his recent proposals concerning cryptocurrency.
During his 2024 campaign, Trump secured significant financial backing from executives and investors in the cryptocurrency sector. In return, he pledged to ease regulations and establish the U.S. as a global leader in the crypto market. He swiftly acted on these promises, signing an executive order that established a task force focused on digital assets, and pardoning Ross Ulbricht, the founder of Silk Road. Moreover, the Securities and Exchange Commission (SEC) concluded its long-standing investigation into Coinbase. These initial steps were well-received by many of Trump’s supporters within the tech community.
However, Trump’s most recent announcement has drawn criticism from his crypto backers. Over the weekend, he revealed plans to create a U.S. strategic crypto reserve.
This reserve, rather than focusing solely on Bitcoin, would also include other cryptocurrencies, such as Ether, XRP, Solana’s SOL token, and Cardano’s ADA. Many of Trump’s crypto supporters had hoped for a Bitcoin-only reserve, believing that a direct investment in this decentralized alternative to traditional money using U.S. funds would be a prudent move. Coinbase CEO Brian Armstrong shared this perspective, tweeting that Bitcoin is the “clear successor to gold.”
Critics, however, are concerned that including other, more speculative digital currencies in the reserve could expose taxpayer funds to high-risk assets of uncertain value, potentially benefiting a small group of wealthy crypto holders. This concern is amplified by proponents of significant cuts to government spending, such as Elon Musk’s proposed reforms at the “Department of Government Efficiency.”
Joe Lonsdale, a venture capitalist and vocal Trump supporter, voiced his disapproval. He tweeted, “Taxation is theft. It should be kept to a minimum. It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”
In contrast, David Sacks, another venture capitalist and a prominent figure in Trump’s tech advisory circle, offered a more cautious view. He suggested it was premature to judge the proposal before the details of any tax or spending programs were released. “Maybe you should wait to find out what’s actually being proposed,” Sacks responded.
