As Donald Trump prepares to ascend as the 47th president of the United States, significant rumors are emerging regarding his openness to the establishment of a strategic reserve that emphasizes US-founded cryptocurrencies. This potential move could shift the landscape of cryptocurrency regulation and investment in the country, positioning coins like USD Coin (USDC), Solana (SOL), and XRP at the forefront.
According to recent reports, Trump’s receptiveness to these cryptocurrencies may sideline Bitcoin (BTC), the world’s largest digital asset by market cap. This speculation has been fueled by his recent dinner with high-profile figures from Ripple, including CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Garlinghouse shared a photo from their meeting, branding it as a “strong start to 2025,” which has further ignited discussions about Trump’s crypto policies.
Historically, Trump’s approach towards cryptocurrency has seemed supportive, evidenced by his promises made during the Bitcoin 2024 conference in Nashville. There, he assured attendees that his administration would never liquidate the US government’s Bitcoin holdings and even pledged to create a strategic national Bitcoin reserve. In conjunction with this, Senator Cynthia Lummis introduced the Bitcoin Act, aiming to establish a national reserve consisting of up to 1 million BTC over two decades.
However, feelings within the crypto community are mixed regarding the potential overshadowing of Bitcoin. Notable figures have voiced their concerns. Almeida, co-founder of Orquestra, expressed disappointment over the possibility, labeling it as detrimental to credibility in the crypto space. Others, like David Bailey from BTC Inc, have dismissed the notion as mere speculation, humorously dubbing Ripple as a ‘Kamala coin’.
Kashif Raza, CEO of Bitinning, highlighted the volatility associated with altcoins, cautioning that investments in such assets could lead to significant losses, especially during bear markets. He stressed the importance of giving Bitcoin priority in establishing a national reserve, as its impact can be gauged more effectively than that of altcoins, which oftentimes lack the same level of maturity and stability.
The debate surrounding Trump’s potential strategic reserve underscores a larger conversation about the future of cryptocurrency regulation and investment strategies in the United States. As the nation moves closer to a future where cryptocurrencies play an integral role in financial systems, the decisions made by Trump’s administration could have profound implications on how these digital assets are perceived and utilized on a national scale.