Expanding the U.S. Crypto Strategic Reserve to Include Blockchain Assets Beyond Bitcoin BTC/USD Using Federal Reserve or Treasury Funds Faces Significant Hurdles

Despite a bullish market response to President Donald Trump's weekend announcement, analysts at Bernstein have raised concerns that expanding the proposed U.S. Crypto Strategic Reserve

Analysts at Bernstein have raised concerns that expanding the proposed U.S. Crypto Strategic Reserve to include blockchain assets beyond Bitcoin (BTC) using Federal Reserve or Treasury funds faces significant hurdles, despite a bullish market response to President Donald Trump's weekend announcement.

The reserve, unveiled ahead of Trump's Crypto Summit scheduled for Friday, includes five digital assets—Bitcoin, Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA)—sparking debate over its feasibility and funding.

While Bitcoin's inclusion aligns with its “digital gold” narrative, the rationale for other assets remains murky, Bernstein noted.

The announcement triggered a sharp market rally. Bitcoin climbed above $94,000 (up 12%), while Ethereum advanced 15%. Solana, XRP, and Cardano surged 25%, 30%, and 70%, respectively, from last week's lows.

However, Bernstein analysts believe justifying federal purchases of non-Bitcoin assets might be a difficult task.

"We think a realistic path could be that the U.S. government can convince Congress that Bitcoin is the new digital gold/global store of value and a gold revaluation/gold reserve reallocation makes sense. However, buying other blockchain assets from Fed funds or treasury funds is a difficult sell," they wrote in the report.

The analysts highlighted three unresolved issues: allocation across assets, funding mechanisms, and legal authority.

On allocation, they suggest market capitalization could guide weights—Bitcoin at 75%, Ethereum at 11% and Solana at 4%. Alternatively, a dedicated committee could decide and allocate the remaining portion among other assets.

Funding poses a deeper challenge. Proposals include reallocating gold reserves, issuing Treasury debt, adjusting the Fed's balance