Bitcoin (BTC) and other major cryptocurrencies maintained strong gains on Monday after a sharp weekend surge, fueled by former U.S. President Donald Trump’s announcement of a proposed U.S. Crypto Reserve. The initiative, unveiled on Sunday, included XRP, SOL, and ADA before BTC and ETH were added.

The news, arriving just days ahead of the highly anticipated first-ever crypto summit later this week, sent Bitcoin soaring past $94,000. The total cryptocurrency market capitalization reclaimed the $3 trillion mark as traders scrambled to capitalize on the potential impact of the development.

However, while many in the crypto community have lauded the announcement as a step toward legitimizing crypto assets nationally, others have raised concerns, questioning the timing and potential conflicts of interest surrounding the decision.

One of the most immediate concerns surfaced after an anonymous crypto whale executed a highly leveraged trade just hours before Trump’s announcement. On Sunday morning, the trader went 50x long on Bitcoin and Ethereum, turning a $4 million position into $200 million. By the time the news broke, the whale had already exited most of their trades, securing a profit of just over $6.5 million in less than 24 hours, triggering widespread speculation about potential insider trading.

Another point of controversy revolves around David Sacks, Trump’s newly appointed Crypto Czar. Derek Martin, founder of Pathfinder Research, pointed out that Sacks has long-standing financial ties to Bitwise Asset Management, which holds Bitcoin, Ethereum, Solana, XRP, and Cardano, the very assets included in the proposed Crypto Reserve. 

Martin argued that Sacks’ role as a major investor in Bitwise via Craft Ventures since 2017 suggests a potential conflict of interest, as the announcement directly benefited Bitwise and its investors.

“These coins are all pumping like crazy on this strategic reserve announcement, which means Bitwise and it’s investors – like David Sacks – are making a ton of money right now.” Said Martin. “Congress must investigate and determine if David Sacks or Donald Trump’s personal investment holdings are driving US crypto policy.”

However, in a separate post, Sacks quickly denied the allegations, stating, “I sold all my cryptocurrency (including BTC, ETH, and SOL) before the start of the administration.” He further clarified that he previously held a $74,000 position in the Bitwise ETF, which he sold on January 22. Dismissing claims of “large indirect holdings,” he assured that he would provide an update once the ethics review process is complete.

Beyond concerns over insider trading and conflicts of interest, industry leaders have voiced differing opinions on the structure of the U.S. Crypto Reserve. In a tweet, Coinbase CEO Brian Armstrong suggested that Bitcoin alone might be the best choice, arguing that it provides the clearest narrative as a digital successor to gold. He proposed a market cap-weighted index of top cryptocurrencies to maintain neutrality.

Meanwhile, Ki Young Ju, founder of CryptoQuant, offered a more geopolitical perspective, warning that the U.S. could be weaponizing cryptocurrency markets. He asserted that Trump’s policies have shifted moral standards in the industry, favoring assets that align with U.S. national interests. According to Ju, this strategy could marginalize Bitcoin and Ethereum, which have long sought neutrality as global digital assets.

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