At the Bitcoin conference in Nashville in July, Donald Trump promised to set up a “strategic National Bitcoin reserve.”
By Sunday morning, March 2, this reserve also included Ether (ETH), XRP, Solana (Sol) and Cardano (ADA) with Bitcoin (BTC).
Trump’s message of truth Social said that his presidential group went on to create Crypto reserve for a larger-scope, igniting a torrent of feedback from all over the crypto community.
Many complained that the reserve doesn’t just stick to Bitcoin. Others asked if the United States should be stored tokens like XRP and Cardano. Others wondered what could have changed Trump’s opinion.
Trump said he would make the United States “crypto capital in the world,” and his timing seemed aimed at retailers. “I love the genius by announcing a strategic reserve on a Sunday where traditional markets are closed and Wall Street is asleep. For the first time, retail investors, ”the son of Trump, Eric Trump, twited Sunday night.
The prices of the assets increased almost immediately, with ADA in particular taking advantage of. There’s still a lot we don’t know about the “crypto strategic reserve.”
Trump’s message on Sunday morning was the first time the administration said there would be five assets in the portfolio. In addition, details are outlined. Here are some big questions.
1. Is he serious?
The United States already owns more than 200,000 BTC, it required through seizures. Experts say this could be the basis of a national reserve without congressional approval. But a multi-coin reserve would certainly require Congress to adopt legislation.
Wyoming Senator Cynthia Lummis has proposed legislation that would see the US buy $ 20 billion in the first year, and 20,000 more BTC in each of the following four years to take the US stock to one million BTC. Lummer’s view of the now expanded multi-coin reserve is unknown. She planned to meet with industry leaders to discuss the matter on March 11. Will she now propose different legislation?
The second subsidiary question is how the United States may pay for the expanded portfolio. Crypto is traded in public and has a public price. Trump’s message does not show whether his administration will seek a new additional appropriation. Could USA sell gold to buy crypto? We don’t know.
2. Why does Solana, XRP and Cardano include? Will there be others?
As many at X have noticed, there are logical reasons to include Bitcoin in a strategic reserve. “We are talking about a reserve and Bitcoin is the undisputed value for the digital age,” noted Hunter Horely, CEO of Bitwise. Bitcoin is “Digital Gold” and BTC’s “Dominance” on the market is still north of 60%. BTC is the first active that any proprietor has.
It is more difficult to make a straightforward case for the other coins. E.g. Is Cardano with a dominance of 1.1%best known as an environment for building decentralized applications (DAPPs). It does not have ETFs like Bitcoin and Ether and are not accepted by Tradfi to almost the same extent.
The five coins are chosen for two different reasons. BTC and ETH are fully decentralized. Solana, XRP and Cardano are made in America, and Trump may include them to promote the US crypto industry. Trump’s announcement seemed to allow the reserve to include other coins in the future.
3. Will the states follow?
Coindesk’s Jesse Hamilton recently wrote that up to 22 states are considering creating their own cryptor reserves, mostly in Bitcoin. Will they now consider a wider range of assets?
4. Will Krypto support it?
The reaction to Trump’s message across professional crypto was warm-to-critical. Trump announced the reserve in Nashville for the purpose of pleasing his audience. But today it is not clear that the crypto industry is 100% behind his plan to bring the reserve. If the measure gets pushback in Congress, the administration needs industry support, so it may be a concern for its backers. Certainly, polymaked -bettor is skeptical that the reserve is coming soon.
