🚀 Crypto Former US Treasury Secretary Knocks Trump’s Bitcoin Reserve Plan

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Former United States Treasury Secretary Lawrence Summers has criticized Donald Trump’s plan for a strategic Bitcoin (BTC) reserve. In a recent Bloomberg interview, Summers called Trump’s plan crazy, adding that it was done to pander to campaign donors. On the campaign trail, Donald Trump rolled out several plans to reshape the U.S. crypto market, a major shift from the present administration’s approach.

There’s No Reason To Do That, Summers Stresses​

According to Summers, it is understandable for the government to hold certain assets but not Bitcoin, as pushed by pro-crypto lawmakers. He added that the idea of a national Bitcoin reserve is crazy and only done to pander to general, special donors. Furthermore, the country needs an oil reserve due to energy demand, and explaining why a gold reserve is understandable.

“I understand why we need a national oil reserve. I understand why a century ago, we accumulated gold in Fort Knox. Of all the prices to support, why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin? There’s no reason to do that other than to pander to generous special interest campaign contributors.”

On the other hand, he noted that crypto and finance innovation is crucial for the country’s development. The United States seeks to be a global leader in most sectors, which creates the need to support innovation.

Several Bitcoin enthusiasts have pushed the idea of a strategic reserve to support bullish price action and ease macro factors. US Senator Cynthia Lummis rolled out a bill that would see the government buy 1 million BTC for 20 years. She said this would help the country address its growing national debt.

Crypto Is Over Regulated​

Amid the criticism, Summers stated that some industry sectors are overregulated, a notion stressed by most crypto enthusiasts for years. This can limit innovation and reduce market sentiments, driving asset prices lower. The present administration took a hostile approach to crypto regulation, resulting in multiple lawsuits against the firms and executives.

However, Trump and pro-crypto lawmakers have pledged positive crypto rules for the space. In the past three weeks, Trump recently announced pro-crypto nominations to head key departments, which ignited market sentiments and drove up asset prices. Several commentators say global adoption will take another turn from US macro policies.