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January 17, 2025 by Sheila
- Trump is reportedly considering Solana and XRP for a US-based crypto strategic reserve alongside USDC.
- The Bitcoin Act proposes the US Treasury acquire 200,000 BTC annually to build a 1 million BTC reserve.
- Experts caution against including volatile altcoins like Solana and XRP in a national crypto reserve.
As Donald Trump is set to start his second term as the 47th president of the United States there are talks of creating a national strategic reserve that may include digital currencies such as USDC, SOL, and XRP, but with BTC likely to be sidelined. As The New York Post reported on January 16, sources familiar with the matter said that Trump is ‘receptive’ to the idea, which will be a big change of direction for the US government regarding cryptocurrencies.
US Digital Assets in Focus.
The idea of a national cryptocurrency reserve was brought up again after Trump met with Ripple CEO Brad Garlinghouse and legal officer Stuart Alderoty for dinner. Garlinghouse posted a photo from the dinner on social media and said it was a “strong start to 2025.” This led to speculation about adding other cryptocurrencies to the national reserve that may outcompete Bitcoin, the largest cryptocurrency by market capitalization.
Some of the speculations regarding the proposed reserve are that USDC, Solana, and XRP are to be the main assets of the reserve, while Bitcoin has not been left behind in the speculations. According to the reported plan, the strategic reserve idea aims to strengthen the position of the United States in the global cryptocurrency market, with a focus on digital assets of the United States. This is a dramatic change in the approach taken by the US to cryptocurrencies, especially in comparison to Bitcoin, which has long been the leader of the crypto market.
Trump’s Bitcoin Reserve Vision.
This speculation comes in light of Trump’s earlier positive approach toward cryptos. In July 2024 Trump addressed the crypto community at the Bitcoin 2024 conference in Nashville, Tennessee. In his speech, he pledged that the U.S. government would not sell off its Bitcoin and vowed to establish a national reserve. Following this, Senator Cynthia Lummis presented the Bitcoin Act, under which the US Treasury would buy up to 200,000 BTC yearly to build a 1 million BTC reserve in several years.
While he has been outspoken in support of Bitcoin, the move to other ‘altcoins’ may suggest a change in direction under Trump. The Bitcoin Act provided a plan to introduce Bitcoin as the official currency of the US government, but the new reports claim that other digital assets like USD Coin, Solana, and XRP may have a role to play in the new government’s crypto policy.
Skepticism Over Altcoin Plans.
The idea of including altcoins in a national reserve has attracted considerable controversy among market participants. There has been a lot of doubt within the crypto community about the plan, with some people dismissing it as “fake news.” David Bailey, CEO of BTC Inc., did not support the idea and referred to it as the “Kamala coin.”
Kashif Raza, CEO at Bitinning has also expressed his fears concerning the price fluctuations in altcoins, noting that investments made in them are likely to result in huge losses, especially if the market is bearish.
Raza pointed out the problems of including other digital assets, such as Solana and XRP, in a national reserve and said that the US government needs to evaluate the effects of having Bitcoin first. He also mentioned that public blockchains such as Solana and Cardano are global networks, not just US-based, even though some foundations are registered in the US.
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