JPMorgan Doubts US Crypto Reserve Approval, Bitcoin and Ethereum Likely Only
1min read JPMorgan Chase has expressed skepticism regarding the approval of a U.S. strategic cryptocurrency reserve, estimating the probability of approval to be less than 50%. This assessment comes from Nikolaos Panigirtzoglou, the Global Market Strategist at jpmorgan chase, who highlighted the challenges associated with gaining congressional approval for such a reserve.
Panigirtzoglou noted that even if the reserve were to be approved, it would be difficult to include smaller tokens such as XRP, Solana (SOL), and Cardano (ADA). The inclusion of these tokens could raise significant concerns about risk and volatility, making it more likely that only Bitcoin and Ethereum would be considered.
The report from JPMorgan Chase, released on Wednesday, discussed the initial market reaction to former President Trump's proposal to include XRP, Solana (SOL), and Cardano (ADA) in a potential strategic cryptocurrency reserve alongside Bitcoin (BTC) and Ethereum (ETH). The crypto market initially saw a sharp rebound following this proposal, but skepticism quickly emerged regarding the feasibility of congressional approval and the inclusion of smaller tokens.
The report also referenced previous state-level Bitcoin reserve proposals that have failed in various regions, including Montana, North Dakota, South Dakota, and Wyoming. Local legislators in these regions expressed concerns about the risks and volatility associated with such reserves, further underscoring the challenges of gaining approval for a national strategic cryptocurrency reserve.
