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Over the weekend, President Donald Trump said he wanted to create a US crypto sanctuary, specifically citing several cryptocurrencies expected to be in the protected areas, including XRP, Solana, Cardano, Bitcoin and Ethereum.
This promptly caused a massive surge in their prices as the president was talking about having a stockpile of code. Many of those benefits have since been returned, but it is not clear what he is talking about when Trump talks about crypto sanctuaries.
One idea is that the government can create a stockpile of cryptocurrency seized from drug traffickers, terrorists, or other criminals who own crypto. Usually, when the government seizes them, they sell them off.
Instead, the government was able to keep it handy in preparation for us.
However, a more likely scenario is the reserve that is used to acquire cryptocurrency for some purpose that I am not very clear with US taxpayer funds. What is clear is that this supports the prices of these unworthy digital currencies, and there is absolutely no intrinsic value except for what the last man decided to pay them.
Therefore, the term “Ponzi scheme.”
Trump’s plans are troubling for several reasons.
The bold crypto industry is trying to solidify political influence and mainstream acceptance
First, some people in the crypto world think it’s a bad thing for the federal government to get involved, as Uncle Sam will allow him to choose winners and losers in the crypto field.
But the more obvious problem is that the president and his family are active players in the crypto industry. They have their own commercial crypto companies. Therefore, the move by the federal government to create not only crypto players, but also important players who can support the prices of a particular cryptocurrency, raises many ethical questions.
The only certainty is that legal challenges continue.
The cryptocurrency market is like a casino. If everyone on the casino floor starts making lots of money, I think, “Well, everyone else is making money, so I’d better sit at the Craps table.”
In reality, the odds stack up against you, and you don’t know how things will break.
David Lazarus covers KTLA business and consumer news. Prior to joining the station full-time, he was an award-winning business columnist for the Los Angeles Times.
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