Cryptocurrency market reacted after President Donald Trump revealed plans for a U.S. “Crypto strategic reserve.”

The cryptocurrency market reacted after President Donald Trump revealed plans for a U.S. “Crypto strategic reserve.”

President Donald Trump's plans for a U.S. ‘Crypto strategic reserve’ has sparked reactions in the cryptocurrency market.

In his post on Truth Social, Trump revealed that Bitcoin and Ethereum will be at the core of this reserve, but he also added Solana, XRP, and Cardano to the roster. This is an updated plan that broadens the scope to multiple tokens, replacing the earlier idea of a Bitcoin-only reserve.

According to Alex Xu, research partner at Mint Ventures, Solana, XRP, and Cardano representatives’ frequent visits to Mar-a-Lago—and their sponsorship of Trump’s campaign—appear to have influenced this decision.

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Xu pointed out that these altcoins have donated huge amounts to Trump’s inauguration fund and other campaign efforts, forging 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.

The inclusion of SOL, XRP, and ADA in the strategic reserve could diminish the credibility of Bitcoin as the central reserve asset.

While the Bitcoin community, known for promoting BTC as a reliable store of value, could see these altcoins as a distraction. 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.

One possible path forward for Trump 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.

However, this scenario begs the question of political motivations. 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?

Ultimately, the fate of the reserve hinges on both political and financial factors.