Following Trump's announcement to include President Trump's announcement to include Cardano and XRP as part of the Crypto Strategic Reserve, many has been questioning Trump's selection of cryptocurrency to build the country's reserves.

One of them is ZachXBT, who is a famous blockchain investigator who has criticised President Trump for selecting Cardano and XRP due to the lack of legitimacy of these cryptocurrencies. He also raised concerns about why Trump had deliberately left out major stablecoin issuers like Circle, Tether, or Paxos.

This, he argues, diminishes their potential as serious competitors to blockchain networks such as Ethereum or Solana. As the debate unfolds, ZachXBT’s remarks have sparked discussions about the role of stablecoin issuers and whether Trump’s policy could favor certain assets over others.

Stablecoin as a mark of legitimacy

ZachXBT voiced his skepticism about ADA and XRP’s credibility on Twitter, asserting that a key indicator of a blockchain’s success is the presence of stablecoin issuers from major players like Circle, Tether, or Paxos. He pointed out that neither Cardano nor XRP has been able to attract these significant stablecoin issuers, which raises questions about their competitiveness in the blockchain space.

When challenged by users suggesting that stablecoin issuers might act as gatekeepers, favoring chains they've invested in, ZachXBT maintained that if ADA or XRP had demonstrated sufficient value, these stablecoin issuers would have already integrated with them.

His comments sparked intense backlash, particularly from Cardano supporters. One user accused him of being an "entitled elitist" who didn’t appreciate the obstacles Circle faces when considering Cardano.

Others pointed out that Bitcoin itself lacks stablecoins from major issuers, to which ZachXBT responded that Bitcoin has Omnilayer stablecoins and presents a fundamentally different value proposition compared to ADA and XRP.

Ripple supporters also pushed back, citing Ripple’s launch of RLUSD, a stablecoin on the network. However, ZachXBT dismissed this as a move that increased centralization on a blockchain that is supposed to be decentralized.

The issue of centralization remains a key point of contention. A user asked ZachXBT whether depending on major issuers like Circle for stablecoins might lead to further centralization.

ZachXBT clarified that his argument isn’t about whether stablecoin issuers contribute positively or negatively to decentralization. Instead, he views their presence as an indicator of which blockchains hold real value in the market. He stated:

“I am not arguing whether the presence of major stablecoin issuers is good or bad for decentralization. They are simply an indicator of which chains are valuable because their main goal is to capture as much value as possible. If XRP or Cardano had enough value to capture, they would have attracted stablecoin issuers by now.”

Casting doubts over Trump’s Crypto Reserve Policy

The debate surrounding ADA and XRP coincides with growing clarity around Donald Trump’s approach to cryptocurrency. His campaign’s push to include crypto assets in a national strategic reserve has sparked optimism in the industry. Eric Trump has praised the initiative, suggesting it could empower retail investors while reducing dependence on traditional financial systems.

However, some, including Coinbase CEO Brian Armstrong, have expressed concerns about spreading the reserve across multiple cryptocurrencies. Armstrong believes focusing solely on Bitcoin would be more effective, given its dominance and stability.

Bitwise’s Jeff Park shares similar reservations, warning that attempting to include a broad range of cryptocurrencies in the reserve could lead to volatility and undermine the policy’s effectiveness. He argues that concentrating on Bitcoin would maintain its position as the dominant store of value in the crypto world, where Bitcoin still controls over 60% of the market.

Despite these concerns, the market has responded positively to Trump’s crypto-friendly stance, with prices surging across the board. Bitcoin jumped 8% to $93,007, while Ether rose 9.7% to $2,438. XRP surged 24.5% to $2.80, with other major cryptocurrencies, including Solana, cardano, and Dogecoin also experiencing significant gains.

While the market’s immediate reaction is optimistic, questions remain about the long-term implications of Trump’s crypto reserve policy and its potential impact on the wider blockchain ecosystem.