Solana Co-Founder Denies Lobbying for Inclusion in US Crypto Reserve

Background

A controversy has emerged surrounding the proposed US government crypto reserve, with Solana co-founder Anatoly Yakovenko denying rumors that the network’s representatives lobbied for its inclusion in the reserve.

Rejection of Lobbying Claims

Yakovenko responded to the rumors in a social media post, stating that:

“What’s a Solana representative? At this point, it’s honestly like saying a Bitcoin representative. No one asked me, and I didn’t pitch it.”

He emphasized that Solana’s decentralized nature makes the notion of an official representative meaningless, likening it to suggesting a spokesperson for Bitcoin.

No Reserve Best Option

The controversy stems from former President Donald Trump’s March 2 announcement that a strategic reserve of digital assets would be established as part of a broader push to integrate crypto into US financial policy.

The announcement triggered a market surge, with Bitcoin rebounding above $94,000, and Ether seeing a 19% increase. The move also reignited long-standing debates over government involvement in crypto markets and whether state-backed holdings would compromise decentralization.

Opposition to Government-Controlled Reserve

Beyond rejecting lobbying claims, Yakovenko expressed opposition to the very concept of a government-controlled crypto reserve. He warned that such a move could jeopardize decentralization, stating that putting the government in charge of crypto holdings would be the fastest way to undermine its core principles.

He stated that his preference was for no reserve at all, but if a reserve were inevitable, he suggested a model where individual US states could manage their own crypto holdings, allowing for economic competition and serving as a hedge against potential Federal Reserve mismanagement.

“If there has to be a reserve, it should be based on objectively measurable criteria.”

He added that he held no strong opinions on what those criteria should be – only that they must be transparent and logically justified. He remained confident that the Solana ecosystem could meet any reasonable benchmarks if they were clearly defined.

Industry Pushback

Yakovenko is not the only figure in the crypto industry skeptical of Trump’s proposed reserve. Lee Bratcher, president of the Texas Blockchain Council, argued that a US reserve should contain only Bitcoin, given its status as the most established and decentralized digital asset.

Coinbase CEO Brian Armstrong also expressed reservations about the proposal to include multiple cryptocurrencies. He advocated for a Bitcoin-only reserve, stating that this approach would be the “simplest” and presents a “clear story as successor to gold.”

Conclusion

The debate over government involvement in digital assets is likely to intensify as Trump’s crypto policies take shape ahead of the 2024 election. Industry leaders, policymakers, and investors will weigh the implications of a national reserve for the future of cryptocurrency.

FAQs

What is the proposed US crypto reserve?

The proposed US crypto reserve is a strategic reserve of digital assets established as part of a broader push to integrate crypto into US financial policy.

What is Solana’s stance on the proposed reserve?

Solana co-founder Anatoly Yakovenko has denied rumors that the network’s representatives lobbied for its inclusion in the reserve and has expressed opposition to the concept of a government-controlled crypto reserve.

What are the concerns surrounding the proposed reserve?

The concerns surround the potential compromise of decentralization and the ability of the government to control the crypto market, as well as the potential for mismanagement by the Federal Reserve.

What is the alternative proposed by Yakovenko?

Yakovenko suggested a model where individual US states could manage their own crypto holdings, allowing for economic competition and serving as a hedge against potential Federal Reserve mismanagement.