At the Bitcoin Conference in Nashville in July, Donald Trump promised to create a “National Strategic Bitcoin National Reserve.”
For Sunday, March 2, that reserve also included Ethher (ETH), XRP, Solana (Sol) and Cardano (ADA) along with Bitcoin (BTC).
Trump’s message about Truth Social said that his presidential work group was moving forward in the creation of the largest cryptographic reserve, lighting a torrent of comments from the entire cryptographic community.
Many complained that the reserve not only adheres to Bitcoin. Others asked if the United States should accumulate tokens such as XRP and Cardano. Others wondered what Trump’s mind could have changed.
Trump said he wanted to make the United States the “cryptographic capital of the world” and that his moment seemed aimed at retail merchants. “I love the genius of announcing a strategic reserve on a Sunday, when traditional markets are closed and Wall Street sleep. For the first time, retail investors win, “he tweeted Trump’s son, Eric Trump, Sunday night.
Assets prices increased almost immediately, with ada benefiting in particular. Even so, there is much that we do not know about the “Crypto strategic reserve.”
Trump’s Sunday morning message was the first time the administration said there would be five assets in the portfolio. Beyond that, the details are incomplete. Here are some big questions.
1. Really?
The United States already has more than 200,000 BTC that he claimed through seizures. Experts say that this could be the basis of a national reserve without Congress approval. But a multi -coin reserve would surely require Congress to approve legislation.
The Wyoming Senator, Cynthia Lummis, has proposed legislation that would see the US. Lummis’s opinions about the multiple reserve now expanded are unknown. He was planning to meet with industry leaders to discuss the matter on March 11. Will you now propose different legislation?
The other subsidiary question is how the United States could pay for the expanded portfolio. Crypto is negotiated publicly and has a public price. It is not clear about Trump’s message if your administration will seek a new appropriation of expenses. Could the United States sell gold to buy cryptography? We don’t know.
2. Why include Solana, XRP and Cardano? Will there be others?
As many in X have noticed, there are logical reasons to include bitcoin in a strategic reserve. “We are talking about a reservation, and Bitcoin is the indisputable value store for the digital era,” said Hunter Horsly, the Bitwise CEO. Bitcoin is “digital gold” and the “domain” of the BTC market is still north of 60%. BTC is the first asset that any holder has.
It is more difficult to present a simple case for the other currencies. For example, Cardano, with a domain of 1.1%, is better known as an environment to build decentralized applications (DAPPS). It does not have ETF as Bitcoin and Ether and tradfi does not accept it in almost the same measure.
The five coins are chosen for two different reasons. BTC and ETH are completely decentralized. Solana, XRP and Cardano are made in the United States, and Trump can include them to promote the cryptographic industry of the United States. Trump’s announcement seemed to leave open the possibility that the reservation could include other coins in the future.
3. Will the states follow the same?
Jesse Hamilton de Coindesk recently wrote that up to 22 states are considering creating their own cryptographic reserves, mainly in Bitcoin. Will they now consider a broader range of assets?
4. Will the cryptography support it?
The reaction to Trump’s announcement through professional cryptography was warm to criticism. Trump announced the reserve in Nashville with the aim of pleaseing his audience. But today it is not clear that the cryptographic industry is 100% behind its plan to bring the reserve. If the measure is withdrawn in Congress, the administration will need support from the industry, so it could be a concern for its sponsors. Certainly, Polymket’s traigators are skeptical that the reserve occurs soon.
