Trump's Crypto Reserve: A Boost or a Risk?
1min read US President Donald Trump's recent proposal for a strategic cryptocurrency reserve has sparked both enthusiasm and caution within the industry. While the plan is seen as a positive development, industry executives emphasize that clear regulation remains a critical factor for the sector's growth and stability.
On March 2, Trump took to the social media platform Truth Social to announce that he had instructed his administration's digital assets working group to include XRP (XRP), Solana (SOL), and Cardano (ADA) in a US government crypto stockpile. He later added Bitcoin (BTC) and Ether (ETH) to the list, stating they would be at the "heart of the reserve." This declaration caused a temporary spike in the prices of the mentioned cryptocurrencies, with Bitcoin recovering above $90,000 and ADA gaining more than 40% in the first 24 hours.
Patrick Young, go-to-market lead at Web3 app Galxe, told Cointelegraph that while Trump's plans are good news for the industry, they are no substitute for clearer regulation. Young noted that the more industry-friendly regulation that follows could be a longer-term driver of crypto performance. Trump has appointed industry-friendly leadership to key regulatory agencies, including the Securities and Exchange Commission (SEC), which has advanced numerous applications for US crypto products that had stagnated under the prior administration.
However, Trump's inclusion of altcoins such as XRP and ADA has raised concerns. Young suggested that Trump's move could be an attempt to increase his own crypto wealth, as he has accumulated various altcoins through entities under his control. Additionally, Adam O'Brien, CEO of crypto educator Bitcoin Well, warned that the planned crypto reserve's exposure to centralization risks could be a slippery slope away from decentralized protocols.
In February, the SEC clarified that memecoins are likely not securities, which could pave the way for clearer guidelines around what constitutes a security in the crypto space. Industry executives eagerly await the new leadership at the US Securities and Exchange Commission to provide clear guidelines, which could help drive the sector's growth and stability.
