“Donald Trump’s Bombshell Message Sunday Set Off Shockwaves in the Crypto Community. There’s A Lot We Don’t Know.”, – WRITE: www.coindesk.com
By Sunday Morning March 2, That Reserve Also Included Ether (ETH), XRP, Solana (SOL) and Cardano (ADA) Alongside Bitcoin (BTC).
Trump’s Message on Truth Social SAID His Presidential Working Group Was Moving Forward on Creating the Larger-Scope Crypto Reserve, Igniting A Torrent of FeedBack Froma.
Trump Said He Wanted to Make the Us The Us of “Crypto Capital of the World” and his HIS TIMING SEMED AIMED AT RETAIL Traders. “I love the Genius of Announcing A Strategic Reserve on a Sunday, WHEN Traditional Markets are Closed and Wall Street Sleepps. For the first time, Retail Investors Win, ”Tweeted Trump’s Son, Eric Trump, Sunday Night.
The assets’ prices rose almost immedialate, with Ada Benefitting in Particular. Still, There’s A Lot We Don’T Know About the “Crypto Strategic Reserve.”
Trump’s Sunday Morning Message Was The First Time The Administration Had Said There Wuld be Five Assets in the Portfolio. Beyond that, deetails are sketchy. HERE ARE SOME BIG QUESTIONS.
1. Is he series? The US ALREADY OWNS MORE THAN 200,000 BTC IT CLAIMED THRUGH Seizures. Experts Say This Could Be the Basis for A National Reserve Without Congression Approval. But A Multi-Coin Reserve Wuld Surely Require Congress To Pass Legislation.
Wyoming Senator Cynthia Lummis has Proped Legislation that would see the US Buy $ 20 Billion in the Firmst Year, and 20,000 More Btc in Each of the Following Four Years Tone. Lummis’s Views on the Now-Expanded Multi-Coin Reserve Are Unknown. She Was Planning to Meet with Industry Leaders to Discusses the Matter on March 11. Will She Now Propose Different Legislation?
The Other, Subsidiary Question is How The Us Might Pay for the Expanded Portfolio. Crypto Is Publicly Traded and Has A Public Price. IT’s not Clear from Trump’s Message Whther his Administration Will Seek A New Spending Appropriation. Could the US Sell Gold to Buy Crypto? We don’t know.
2. WHY INCLUDE SOLANA, XRP AND CARDANO? Will there be Others?
As many on x have noted, there are logical reasons to include bitcoin in a strategic reserve. “We’re Talking About A Reserve, and Bitcoin Is The UndisPuted Store of Value for the Digital Age,“ Noted Hunter Horsel, The CEO of Bitwise. Bitcoin is “Digital Gold” and BTC’s “Dominance” of the Market is Still North of 60%. BTC is the First Asset Any Holder Holds.
It’s Harder to Make A StraightForward Case for the Other Coins. For Example, Cardano, With A Dominance of 1.1%, Is Best Known As An Environment to Build Decentralized Applications (DAPPS). It Doesn’T have etfs like bitcoin and ether and isn’t Accepted by tradfi to nearly the Same Extent.
The Five Coins Are Being Chosen for Two Different Reasons. BTC and ETH are Fully Decentralized. Solana, XRP and Cardano Are Made in America, and Trump May Be Including Them to Promote the US Crypto Industry. Trump’s AnnounCement Seemed to Leave Open the Possibility that The Reserve Could Include Other Coins in the Future.
3. Will The States Follow Suit?Coindesk’s Jesse Hamilton Wrote Recently That Up To to 22 States Are Considering Creating Their Own Crypto Reserves, Mostly in Bitcoin. Will they consider a wider range of assets?
4. Will Crypto Support It? The reaction to Trump’s Announcement Across Professional Crypto Was Tepid-To-Critical. Trump AnnounCed The Reserve at Nashville Aiming to Please His Audence. But Today Not Clear That Crypto Industry is 100% Behind His Plan to Bring the Reserve About. If the Measure Gets Pushback in Congress, The Administration Will Need Industry Support, So That Might Be A Worry for It Backers. Certainly, Polymaket Bettors Are Skeptical That Reserve Will Come About Soon.
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