Pro-XRP lawyer Bill Morgan rattled the crypto market on Friday with his latest comments. Notably, the attorney called out reasons why the U.S. Bitcoin reserve could potentially lose value against the ‘crypto stockpile’ moving ahead. This conjecture primarily rides on the back of a scenario wherein altcoins outperform BTC.
Pro-XRP Lawyer Rationalizes Why Bitcoin Reserve Could Depreciate Against Crypto Stockpile
XRP lawyer Bill Morgan revealed in an X post on March 7 that the setback lies in a case that assets within the crypto stockpile outperform BTC. “The market won’t care about what asset is in the strategic reserve,” the attorney added, even if it is the flagship crypto.
Historically, the market has sought value and will continue doing so, buying better assets and thus presenting risk to Bitcoin. Morgan further sparked market speculations by saying, ‘There will be an inherent risk of the Bitcoin strategic reserve losing value against the non-BTC market and US crypto stockpile,” given altcoins outperform.
America’s BTC Reserve-Only Approach: A Boon Or Curse?
The attorney highlighted that if the U.S. crypto stockpile is not increased by budget-neutral acquisition despite its assets outperforming BTC, other countries with a broader approach toward crypto reserves could leverage substantially.
Given that this saga happens, the U.S. may constantly need to take action to protect its BTC-only reserve. In turn, the flagship coin could see further advantages in the American market. “A form of market protectionism,” the pro-XRP lawyer added, sparking market speculations.
“Where would that leave a free crypto market with a level playing field?” Morgan concluded by questioning David Sacks, America’s Crypto Czar.
US Strategic Reserve & Crypto Stockpile: Here’s All To Know
Notably, U.S. President Donald Trump recently signed a Bitcoin Executive order to establish a BTC strategic reserve. America’s latest BTC reserve will contain roughly 200,000 coins that are already in the government’s possession. These coins have been seized over the years as a result of crackdown on criminal and illicit activities.
Besides, David Sacks recently revealed that Scott Bessent and Howard Lutnick have been appointed to tap into more resources to acquire additional BTC for reserve purposes. This avenue is taken to achieve a feat that avoids taxpayer money.
On the other hand, the crypto stockpile will encompass assets like XRP, ADA, ETH, and SOL. However, the key difference between the reserve and stockpile remains in upsizing them. While more ways to acquire BTC for the U.S. reserve are in the pipeline, the govt. will not actively look for ways to purchase more assets in the stockpile.
In light of this feat, the XRP lawyer calls out a scenario wherein altcoins outperform BTC and threaten America’s Bitcoin reserve-only approach. On the other hand, the upcoming White House crypto summit today is expected to offer market participants further clarity on the matter.
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