Pro-XRP attorney Bill Morgan has raised concerns about the long-term value of the newly established U.S. Strategic Bitcoin Reserve, warning that it could depreciate if altcoins begin to outperform Bitcoin.
In a March 7 post on X, Morgan argued that the market prioritizes asset value over reserve composition. He cautioned that if cryptocurrencies like XRP, Ethereum (ETH), Cardano (ADA), and Solana (SOL) deliver better returns than Bitcoin, the U.S. reserve could fall behind a broader “crypto stockpile.”
Morgan also pointed out that maintaining a Bitcoin-only reserve could pose risks, particularly if other nations take a more diversified approach. He suggested that unless the U.S. government actively expands its crypto holdings through budget-neutral acquisitions, other countries may gain an advantage in digital asset reserves.
His remarks follow President Donald Trump’s executive order establishing the U.S. Strategic Bitcoin Reserve. According to the White House Crypto Czar, David Sacks, the reserve currently holds around 200,000 BTC, primarily seized from criminal activities. Government advisors Scott Bessent and Howard Lutnick have been assigned to grow the Bitcoin reserve without using taxpayer funds.
Despite this initiative, the U.S. approach to crypto reserves remains limited. Bitcoin critic Peter Schiff pointed out that the stockpile consists only of confiscated assets and does not involve direct government purchases. He emphasized that ETH, XRP, ADA, and SOL will not be included, reinforcing that the reserve is strictly Bitcoin-based.
Morgan’s comments have fueled speculation about possible market intervention, with some suggesting the U.S. government may take steps to protect Bitcoin’s dominance. He described this as “a form of market protectionism,” sparking debate on whether such policies could distort the free crypto market.
Meanwhile, Jan3Com CEO Samson Mow has expressed doubts that the U.S. Strategic Bitcoin/Crypto Reserve will incorporate altcoins, reinforcing concerns that the reserve’s structure may not align with broader market trends.
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