Outside Source
Donald Trump is reportedly open to establishing a strategic reserve that would include US-founded cryptocurrencies and Bitcoin.
News
As Donald Trump prepares to take office as the 47th president of the United States, rumors have emerged about a potential strategic reserve emphasizing US-based cryptocurrencies instead of Bitcoin.
The New York Post, citing unnamed sources, reported on Jan. 16 that Trump is “receptive” to the idea of establishing a strategic reserve prioritizing cryptocurrencies like USD Coin (USDC), Solana (SOL) and XRP (XRP).
Sources told the NYP that the idea could sideline Bitcoin (BTC), the world’s largest cryptocurrency by market cap.
Speculation around a broader crypto reserve intensified after Trump recently dined with Ripple CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Garlinghouse shared a photo from the dinner, calling it a “strong start to 2025.”
Background
The idea of a national Bitcoin reserve gained traction in July 2024 when Trump promised during the Bitcoin 2024 conference in Nashville, Tennessee, that his administration would never sell off the US government’s Bitcoin holdings. He pledged to create “a strategic national Bitcoin reserve” in a speech at the conference.
Soon after, on July 31, Senator Cynthia Lummis introduced the Bitcoin Act, outlining a plan for the US Treasury to acquire up to 200,000 BTC annually, eventually building a reserve of 1 million BTC. The assets would be held for a minimum of 20 years.
Trump has shown a pro-crypto stance, nominating Paul Atkins as the new US Securities and Exchange Commission chair in a move widely seen as signaling a more lenient regulatory environment for cryptocurrencies.
Related: Bitcoin reserves interest gains momentum across 5 continents
Crypto community reacts strongly
The crypto community has reacted sharply to rumors of prioritizing altcoins over Bitcoin.
Almeida, co-founder of Orquestra, criticized the move, saying, “It’s very disappointing if true. Credibility goes to -1.”
David Bailey, CEO at BTC Inc, dismissed the concept as “fake news,” sarcastically calling Ripple “Kamala coin.”
Source: David Bailey
Mike Dudas, co-founder of The Block, mocked the idea, posting on X, “Lol, strategic Solana reserve. Things are about to get real stupid, real fast.”
Kashif Raza, CEO of Bitinning, warned against the potential risks of including altcoins in a national reserve. He told Cointelegraph:
“The US government should have started with Bitcoin to gauge its impact before considering altcoins. Altcoins are more volatile, especially during bear markets. Heavy investment in them could lead to significant losses and negative media coverage.”
Raza also cautioned against labeling any blockchain US-based, stating, “Public blockchains like Solana or Cardano are global assets. While foundations may be US-registered, the networks belong to the public.”
Magazine: Trash collectors in Africa earn crypto to support families with ReFi
This article first appeared at Cointelegraph.com News
