GuShiio.com The latest developments in cryptocurrency strategic reserves have boosted the market, and the market will further verify it in the future.
Author: Weilin, PANews
On the evening of March 2, U.S. President Trump announced the asset classes of the cryptocurrency strategic reserve on Truth Social, including XRP, SOL, and ADA. He later added that Bitcoin BTC and Ethereum ETH, as other valuable cryptocurrencies, will also become the core of the reserve.
Once this news was announced, the cryptocurrency market rebounded quickly, and the five major currencies generally rose. As of 8:00 on March 3, the Bitcoin price exceeded US$94,000, rising 9.71% within the day.
Trump announced five assets in the crypto asset reserve: BTC, ETH, XRP, SOL, and ADA
On March 2, against the backdrop of a general market downturn, Trump suddenly issued a statement on cryptocurrency reserves: U.S. cryptocurrency reserves will boost this key industry after years of corruption attacks by the Biden administration. That’s why my executive order on digital assets directs the President’s working group to advance a crypto strategic reserve that includes XRP, SOL, and ADA. I will make sure that America becomes the encryption capital of the world. We are making America great again! rdquo;
Subsequently, the crypto market received a significant boost. As of 8:00 on March 3, Bitcoin was quoted at US$94,338, an increase of 9.71%; Ethereum was quoted at US$2,513, an increase of 13.41%;Solana (SOL) rose to US$178, an increase of 24.35%;XRP rose to US$2.91, an increase of 33%;Cardano (ADA) rose sharply by 72.16%. In addition, Trump’s memin TRUMP also rose 25.36%.
Trump promised to establish a strategic national reserve of Bitcoin at the Bitcoin Conference in Nashville in 2024. In his keynote speech, Trump told the audience: If I am elected, my administration’s policy is to retain 100% of all bitcoins currently held or acquired by the U.S. government in the future. rdquo;
On January 23 this year, within Trump’s first week in office, he signed a crypto executive order as president, instructing the Digital Assets Working Group to study the feasibility of establishing a national crypto reserve and explore a regulatory framework for stablecoins.
“President Trump announced the creation of a crypto strategic reserve consisting of Bitcoin and other top cryptocurrencies. This is consistent with Executive Order 14178 issued in the first week.& rdquo; David Sacks, White House head of artificial intelligence and encryption, wrote on Platform X. He added: There will be more news released during the summit.“ rdquo;
It is reported that President Trump will attend the first White House Cryptocurrency Summit on March 7 and deliver a speech. Attendees will include prominent founders, CEOs and investors in the cryptocurrency industry, as well as members of the President’s Digital Assets Working Group. The summit will be hosted by White House AI and cryptocurrency czar David Sacks and managed by Bo Hines, executive director of the working group.
Although the latest developments in cryptocurrency strategic reserves have boosted the market, some industry insiders have questioned Trump’s cryptocurrency reserve plan. In particular, the ADA’s selection triggered some unexpected reactions. According to @CryptoDoggyCN, in early February, ADA founder Charles Hoskinson announced in a live broadcast that he would meet a big shot. On February 27, he posted a message saying that he couldn’t go to ETHDenver and wanted to go to Florida, where Trump’s home, Sea Lake Estate, is in Florida.@ CryptoDoggyCN believes that the ADA’s selection may be influenced by a form of lobbying.
Some influential figures in the technology and crypto industries have criticized Trump for including cryptocurrencies other than Bitcoin in reserves. Naval Ravikant, co-founder of AngelList, wrote: U.S. taxpayers should not take on bids for cryptocurrencies that are nominally decentralized.“‘’ rdquo; He added: If it has lobbyists, it is not decentralized.”“ rdquo; Aave founder Stani Kulechov also wrote: Good news: Strategic crypto reserves are in preparation; Bad news: Lack of DeFi; Ugly news: XRP, SOL and ADA.”“ rdquo;
Alex Xu, research partner at Mint Ventures, analyzed that SOL, XRP, and ADA have gone to Mar-a-Lago Manor frequently after Trump took office, and have also provided Trump with many overt sponsorships, such as inauguration fund donations, etc., The probability of various circuitous transfer of benefits in private will only increase. Trump also reciprocated this time by giving explicit feedback and arranging an advertising space within the president’s authority. However, in the long run, projects such as ada and xrp can be used as reserve assets. This absurd approach will only weaken the seriousness of the BTC strategic reserve itself and further reduce the possibility of the BTC Reserve Act being passed at the federal level. It is one thing to let the working group advance its work, but success at the legislative level is another. The Republican Party’s advantage in the House is very weak, and it is impossible for it to have the ability to pass sol, ada, and xrp through legislation and enter the national reserve. The only possibility is for Trump to establish a national sovereign fund directly managed by the Treasury through an executive agency, so that the above assets can be purchased directly without passing through federal legislation. But how likely is this? How much benefits must SOL, XRP and ADA deliver to the Trump family before the president can make an express order to buy these things with taxpayer money?
In addition, some industry insiders pointed out that in the past few months, Trump has used the words reserve and stockpile interchangeably when referring to relevant policies, but there are some key differences between them. Rebecca Rettig, chief legal officer of Jito Labs, said: From my understanding, hoarding means that the government will hold the cryptocurrency they accumulate through various cases, and hoarding is ultimately what the Treasury Department decides to buy and hold. rdquo;
Analyst Chen Jian Jason said on the X platform that a very uncertain factor in the package of cryptocurrency strategic reserve plans is, what means will be used to complete the reserve? According to the extremely self-interested style of Trump businessmen, they have always adhered to the principle of not spending money if they can prostitute for free. It is difficult to expect him to take out the money in his pocket, buy it, complete the reserves and then pull it out. The U.S. fiscal deficit has reached US$1.83 trillion, and landlords have no food left. Therefore, Trump may complete the reserves without spending money, such as requiring the government to no longer sell the BTC held by it, allowing cryptocurrency-related companies to use BTC to pay taxes, and even voluntarily paying it through donations.
He said that APT, SUI, MOVE, etc. may be reserved in the future. If you don’t take money out to complete the reserve, the nature of the benefit is essentially equivalent to locking up positions, that is, the funds flowing into the strategic reserve will not be sold again for a long time, such as offsetting the US government’s biggest concern about the previous negative position., and it won’t really be like BlackRock and MicroStrategy, taking money into the market to pull the offer.
Despite this, on March 3, Zhao Changpeng, former CEO of Binance, issued an article on the X platform expressing his observations on the current market. The current market is obviously dominated by US Coins. They have promoted the development of encryption. I am very happy to see any progress made in the adoption of cryptocurrencies will benefit the industry as a whole and continue to build.
Brian Armstrong, co-founder and CEO of Coinbase, said when talking about investment strategies on Platform X: I think investing in Bitcoin alone may be the easiest choice, and as a successor to gold, the logic behind it is clear; if people want more diverse options, they can build a market-capitalization-weighted index of cryptoassets to keep it unbiased. But probably the first option is the simplest.& rdquo;
At present, the five major categories of crypto asset reserves announced by Trump have injected optimism into the market, but their implementation methods and specific results still need time to test, and the future market will further verify them. PANews will pay close attention to follow-up developments.
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