Vance Rejects Crypto Solutions for Record-Breaking $40 Trillion US Debt

US Vice President JD Vance has rejected the idea of using Bitcoin and XRP to cut down the national debt, which has surpassed $40 trillion. This decision stands in contrast to the pro-crypto stance maintained by former President Donald Trump.

Vance explicitly ruled out Bitcoin and XRP as debt reduction tools, pointing instead to three pillars: economic growth, foreign investment, and Treasury Secretary Scott Bessent's plan, known as the '3-3-3 rule.'

The 3-3-3 rule aims to bring the deficit down to 3% of GDP, achieve 3% economic growth, and produce an additional 3 million barrels of oil per day. This traditional approach differs from crypto-native theories that view Bitcoin as a reserve asset capable of rivaling gold or US Treasuries.

While Vance's statement dismisses the idea of using cryptocurrencies for debt reduction, it does not rule out their potential use in other areas of public policy. The reaction to this announcement has been measured, with Bitcoin consolidating around key technical levels and XRP holding up with relative resilience.