Trump's Crypto Reserve: Bitcoin, Ethereum, and Controversial Altcoins

President Donald Trump's recent announcement of a U.S. "crypto strategic reserve" has sparked a significant shift in the cryptocurrency market. In a post on Truth Social, Trump revealed that Bitcoin and Ethereum would form the core of the reserve, but he also included Solana (SOL), XRP, and Cardano (ADA). This decision has raised concerns, particularly regarding the inclusion of XRP.

Critics have expressed worry about using taxpayer money to purchase XRP, an asset where Ripple controls a substantial portion of the circulating supply. One user described the idea as "pure insanity," questioning the advice Trump is receiving. In response, pro-XRP lawyer Bill Morgan clarified that the amount of XRP held in escrow has significantly decreased, and Ripple's control over the circulating supply is much smaller than critics claim. He accused those spreading misinformation of relying on outdated arguments and anti-XRP sentiment.

Alex Xu, a research partner at Mint Ventures, also raised concerns about the inclusion of SOL, XRP, and ADA in the reserve. He argued that these altcoins have supported Trump in the past, including through donations, and suggested that this could be a political favor rather than a strategic decision. Xu warned that this could make it harder for the BTC reserve bill to pass, given the current weak Republican advantage in the House of Representatives.

Moreover, Xu warned that passing legislation that includes altcoins like SOL, XRP, and ADA in the national reserve could prove challenging. There is also speculation that Trump could bypass Congress and establish a national sovereign fund under the Treasury Department to purchase these assets directly.