1. United States
2. Calif.
3. Letter

The administration's proposed Crypto Strategic Reserve raises concerns about the suitability of volatile cryptocurrencies as government reserve assets. While cryptocurrency advocates argue it could help diversify holdings and hedge risks, critics rightly point out the extreme price fluctuations make cryptocurrencies a poor choice for this purpose. Recent market turmoil, including the crash of Trump-linked meme coins and a major cryptocurrency exchange hack, demonstrate the risks and lack of stability in this space. Rather than purchasing cryptocurrencies speculatively, the government should focus efforts on regulating this market appropriately to protect consumers and maintain financial system integrity. The U.S. dollar remains the global reserve currency, backed by the full faith and credit of the United States government. Any strategic reserves should consist of stable, widely-accepted assets aligned with prudent fiscal policy and economic fundamentals. Cryptocurrency's inherent volatility poses unacceptable risks inconsistent with sound public finance. The proposed Crypto Strategic Reserve plan should be reconsidered in favor of more traditional, responsible asset management.