Solana's Co-Founder Warns Against Federal Control of Crypto Reserves

Anatoly Yakovenko, the co-founder of the Solana SOL/USD ecosystem, voiced concerns on Wednesday about the implications of a federally controlled cryptocurrency reserve, emphasizing a significant threat to the decentralization ethos of blockchain.

What Happened: In a post on X, Yakovenko shared his preference regarding the establishment of a potential cryptocurrency reserve, showcasing a clearly defined hierarchy of options.

His first choice was straightforward: “No reserve, because if you want decentralization to fail, you'd put the government in charge of it.” He argued that government oversight would undermine the fundamental principles that underpin decentralized currencies.

However, Yakovenko acknowledged that if there were to be reserves in place, they should be overseen by individual states. This approach serves as a safeguard against possible errors made by the Federal Reserve.

In the event that a federally managed reserve becomes a reality, Yakovenko suggested that it be based on “objectively measurable requirements.” He stated, “I don't care what they are, they can even be constructed such that only Bitcoin satisfies them right now, they just must be objectively measurable and rationally justified.” This indicates a call for a structured and rational framework for any potential reserve system.

In response to questions regarding whether Solana had been proposed for inclusion in the anticipated U.S. cryptocurrency reserve, Yakovenko clarified, “No one asked me, and I didn’t pitch it.”

Why It Matters: Yakovenko’s statements come at a critical time, following the unexpected announcement of a strategic cryptocurrency reserve, which is set to include prominent coins such as Bitcoin BTC/USD, Ethereum ETH/USD, XRP XRP/USD, Cardano ADA/USD, and SOL.

This proposal of including multiple cryptocurrencies has drawn criticisms, particularly from some factions that support former President Donald Trump. In addition, Coinbase CEO Brian Armstrong has also voiced his opinion that the best approach would be to restrict the reserve to just Bitcoin.

Despite this, Commerce Secretary Howard Lutnick hinted that Bitcoin could be given a unique status in the reserve, while other cryptocurrencies would be regarded within a different but favorable framework.

Attention is now focused on the upcoming White House crypto summit, which promises to deliver a clearer understanding of the proposed reserve's structure and implications.

Current Price Action: As of this writing, SOL is priced at $6.23, reflecting a 13.61% increase within the last 24 hours, based on data from market analysis.

Solana, Crypto, Decentralization