Bitcoin and XRP may be part of President Donald Trump’s broader crypto plans, but Vice President JD Vance is not backing them as a direct way to reduce the U.S. debt.
With national debt now above $40 trillion, Vance pointed to economic growth, foreign investment, and Treasury Secretary Scott Bessent’s plan instead.
Vance Reveals Trump’s Economic Strategy
During a Newsmax interview, host Carl Higbie asked JD Vance,
“President Trump was talking about a crypto reserve with Bitcoin and XRP and a few other things. Is there anything on the horizon to start offsetting this?”
In response, Vance noticeably avoided backing crypto as the direct solution, pivoting instead to Treasury Secretary Scott Bessent’s traditional economic growth model, which aims to make the U.S. economy grow faster than its debt.
Vance said Bessent has a “very discreet plan,” of course, supported by the president of the United States, to get the United States to a point where our economy is growing faster than our debt. And if you look, we are on track.”
The focus is also shifting toward traditional capital.
Vance said nearly $19 trillion in foreign investment is expected to enter the U.S. over the next decade, which could expand the tax base and support the Treasury market.
Sovereign Wealth Fund Could Still Include Bitcoin
Vance also points out Trump’s interest in creating a U.S. sovereign wealth fund. While Bitcoin could potentially become part of a wider asset mix, the fund would focus more broadly on domestic equities, energy and other strategic assets.
That makes crypto look more like a possible supporting asset than a direct tool for paying down the debt.
Trump also addressed the reserve question at the White House gathering, saying a Bitcoin reserve “has been talked about” and that it had “taken a lot of pressure off the dollar.”
However, he pointed to SEC Chairman Paul Atkins and CFTC Chairman Michael Selig for the final structural decisions.
CLARITY Act Takes Priority Over Crypto Reserve
The administration’s immediate crypto focus also appears to be regulation. Vance has backed the CLARITY Act, calling it “very important” for the U.S. technology sector.
The bill aims to establish clearer rules for digital assets and blockchain projects, potentially giving companies more certainty to build in the U.S.
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