An analyst suggests that including altcoins in national reserves also increases centralization risks.
On March 3, Patrick Young, Head of Marketing at Web3 platform Galxe, told Cointelegraph that former U.S. President Donald Trump's proposal to build a strategic cryptocurrency reserve is positive for the crypto industry—but it doesn’t substitute clearer regulations.
In a March 2 post on Truth Social, Trump announced he had directed his administration’s digital asset task force to add XRP, Solana (SOL), and Cardano (ADA) to a proposed U.S. crypto reserve. Later, Bitcoin (BTC) and Ethereum (ETH) were included as "core reserves."
Since mid-2024, Trump has promoted plans for a U.S. strategic crypto reserve.
Source: Donald Trump
Trump’s declaration triggered short-term price surges for the mentioned assets. Bitcoin briefly reclaimed $90,000 before settling near $87,000, while Cardano surged over 40% within 24 hours.
Young noted: "We all hope this leads to more pro-industry regulations, which could become a long-term driver for crypto market performance."
Trump appointed crypto-friendly leaders to key agencies like the SEC, which accelerated approvals for previously stalled crypto products.
Young added: "The industry eagerly awaits the SEC’s new leadership, especially regarding clearer guidelines on securities classification."
In February, the SEC indicated that memecoins likely don’t qualify as securities.
Risks of Altcoin Inclusion
Young highlighted concerns that Trump’s inclusion of altcoins like XRP and ADA might be perceived as self-enrichment, given his reported holdings. Adam O’Brien, CEO of Bitcoin Well, warned this introduces centralization risks:
"If we include centralized assets, why not add blue-chip stocks? Moving away from crypto protocols starts a slippery slope."
FAQ
Q: Why can’t crypto reserves replace SEC regulations?
A: Reserves may boost market sentiment but lack the legal clarity and investor protections provided by formal regulatory frameworks.
Q: What’s the impact of Trump’s crypto reserve proposal?
A: Short-term price volatility, but long-term effects depend on accompanying policy developments.
Q: How does altcoin inclusion affect decentralization?
A: Prioritizing centralized assets contradicts crypto’s foundational principles, potentially undermining trust.
👉 Explore more about crypto regulations
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