The announcement by US President Donald Trump regarding the establishment of a strategic cryptocurrency reserve has sparked considerable interest within the industry. While welcoming this move, industry experts caution that it cannot replace the need for clearer regulatory frameworks. Patrick Young, a leading figure at Web3 app Galxe, emphasized the importance of regulatory clarity as a long-term driver of cryptocurrency performance.
In his recent social media update, Trump directed his digital assets working group to incorporate alternative cryptocurrencies like XRP, Solana (SOL), and Cardano (ADA) into the US government’s crypto holdings. He later extended the list to include Bitcoin (BTC) and Ethereum (ETH), highlighting their role as central components of this reserve.
The initiative follows Trump’s ongoing advocacy for a US strategic cryptocurrency reserve, first proposed in mid-2024. His latest declaration resulted in a temporary surge in the prices of the mentioned cryptocurrencies. Notably, Bitcoin’s value rose above $90,000 before settling at approximately $87,000, and ADA saw a significant increase of over 40% within a day of the announcement.
With Trump’s appointment of industry-friendly figures to key regulatory positions, including the Securities and Exchange Commission, there is optimism for progress on crypto-related applications that had previously languished. Market players eagerly await new guidelines concerning what constitutes a security in the crypto domain.
While Trump’s inclusion of altcoins like XRP and ADA has been met with skepticism and accusations of self-enrichment efforts, it also raises concerns regarding the centralization risks associated with such a reserve. Critics argue that focusing on centralized assets could detract from the decentralized ethos of cryptocurrencies.
Ultimately, the industry remains hopeful for future policy advancements, though some caution against the potential pitfalls of a government-controlled crypto stockpile.
