- Trump includes Bitcoin, Ethereum, Solana, XRP, and Cardano in reserve.
- Solana, XRP, and Cardano’s ties to Trump may have influenced decisions.
- Experts fear altcoins could weaken Bitcoin’s position as the central reserve asset.
The cryptocurrency market reacted after President Donald Trump revealed plans for a U.S. “Crypto strategic reserve.”
In his post on Truth Social, Trump specified that Bitcoin and Ethereum would be at the core of this reserve but added Solana, XRP, and Cardano to the roster. This updated plan replaces the earlier idea of a Bitcoin-only reserve, potentially expanding the scope to multiple tokens.
Possible Impact on Reserve Feasibility
Some wonder if adding these altcoins might reduce Bitcoin’s role in the reserve.
According to Alex Xu, research partner at Mint Ventures, frequent visits by Solana, XRP, and Cardano representatives to Mar-a-Lago—and their sponsorship of Trump’s campaign—appear to have influenced this decision.
Related: Robert Kiyosaki Warns of Financial Collapse: Bitcoin & Silver as Refuge
Xu pointed out that these altcoins have donated huge amounts to Trump’s inauguration fund and other campaign efforts, creating a strong relationship between the projects and the president.
In return, Trump seems to have rewarded them by granting each a “position” in the expanded U.S. crypto reserve plan. However, this move raises doubts about the original BTC reserve concept.
Undermining Bitcoin’s Seriousness
Xu argues that the inclusion of SOL, XRP, and ADA in the strategic reserve could weaken the credibility of Bitcoin as the central reserve asset.
The Bitcoin community, known for promoting BTC as a reliable store of value, could see these altcoins as a diversion. Allowing these lesser-known tokens into the reserve might dilute Bitcoin’s status and hinder the BTC reserve bill’s chances at the federal level.
A Possible Executive Order?
One possible route for Trump to move forward without congressional approval would be through an executive order. Xu said that Trump could establish a national sovereign fund under the Treasury Department, allowing the U.S. government to purchase these digital assets directly.
Related: President Trump to Speak at First-Ever White House Crypto Summit on March 7
However, this scenario raises questions about the political motivations behind such a move. How much support would Solana, XRP, and Cardano need to provide in order for Trump to authorize the use of taxpayer money to buy these assets? Whether the reserve will come to fruition depends on both political and financial factors that are still in play.
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