While some token holders might be salivating over the idea of the government buying cryptos other than bitcoin, market observers raised concerns.
"This is a ridiculous idea and will never happen," Quinn Thompson, founder of hedge fund Lekker Capital, said in an X post.
"It's not the government's place to be making venture capital bets on altcoins," Thompson elaborated to CoinDesk. "This rumor of a strategic reserve for other, non-BTC coins is another example of where people are taking what otherwise is a bad idea and running with it as fact."
Anthony Georgiades, general partner of investment firm Innovating Capital, said while it's "extremely positive" to promote U.S.-based innovation, the potential "nationalization of digital assets" could weaken efforts to decentralize blockchain economies.
"As it stands today, there's truly only one token that is sufficiently and purely decentralized and that is bitcoin," he said in an interview on the CoinDesk Markets Daily show. "These other projects all have the foundational strengths and ability towards a path to that level of decentralized ethos. This nationalization of digital assets might potentially weaken those efforts over time."