Synopsis: This article describes the crypto program named ‘America First.’ It lists out the criticisms of this program. One of the main concerns is transparency and increasing government interference in crypto, which can lead to a reduction in decentralisation.
Donald Trump’s unexpected proposal for the ‘America First’ crypto program pushed many crypto programs into political debate and financial markets.
If governments hold large amounts of cryptocurrency, can cryptocurrency remain independent from the state?
What Trump Proposed
In March 2025, Donald Trump announced the formation of a presidential working group to create a “Crypto Strategic Reserve.” This reserve includes cryptocurrencies such as XRP, Solana (SOL), and Cardano (ADA), while also confirming that Bitcoin (BTC) and Ethereum (ETH) will be central to this reserve.
Trump presented the plan to support the crypto industry, which received unfair treatment during the previous administration. His goal is to make the United States the crypto capital of the world.
Financial markets reacted quickly. The prices of several cryptocurrencies surged after the announcement. XRP jumped nearly 30%, Solana rose about 20%, and Cardano increased more than 60%. Even the largest cryptocurrencies gained, like Bitcoin by 11% and Ethereum by 16%.
However, the excitement did not last long. Bitcoin rose to around $94,000 before falling back toward the mid-$80,000 as traders began selling and volatility returned.
Supporters see a major milestone
Many crypto supporters see the proposal as long-awaited validation from the government. For years, crypto advocates have argued that digital assets could become an important part of national financial systems.
Some analysts say Trump’s announcement pushed investors to quickly buy crypto again, helping prices rise. Others view the idea as part of a bigger geopolitical strategy.
For example, Senator Cynthia Lummis has argued that if the United States officially holds Bitcoin as a national asset, it could strengthen the country’s leadership in financial innovation. In this view, a crypto reserve would function similarly to the Strategic Petroleum Reserve or national gold reserves—something the government keeps as a strategic financial resource.
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Critics worry about political influence
Not everyone is convinced. Some participants think that the government involvement can reduce the importance of one of the motives of crypto, decentralisation, and reducing intermediaries.
After the fading of the initial rally, many investors became uncertain. Some analysts said that the proposal can be just a negotiation strategy, where many cryptocurrencies like XRP, SOL, ADA are taken to build support for a reserve focused with main emphasis on Bitcoin and Ethereum.
The critics mentioned that government-controlled crypto can distort the market. There is still much confusion about how this reserve is going to work.
- Who will control the digital wallet?
- How will the government value crypto on its balance sheet?
- What happens if the future administration changes its policy toward crypto?
What happens next?
The United States owns around 200,000 Bitcoins, seized from criminal cases, making it the holder of Bitcoin in the world. If the US creates a crypto reserve, other countries might follow its policies. Some countries, like Switzerland, Brazil, and Hong Kong, are discussing similar ideas. A US reserve can increase the country’s influence over global crypto regulation while affecting liquidity in the crypto markets.
For now, the real question is: Will the crypto reserve be transparent? OR Will the crypto reserve be another political tool for establishing control?
Written by Parvati Anilkumar
