President Donald Trump Announces the Creation of a Strategic Reserve, Including Bitcoin, Ethereum, XRP, Solana, and Cardano

After this announcement, the prices of these cryptocurrencies surged—Bitcoin rose by 10%, and others like Cardano jumped by over 60%.

The upcoming U.S. administration meeting on March 7 to discuss cryptocurrencies is expected to be a significant event, especially following President Donald Trump's recent post on Truth Social.

Announcing the creation of a strategic reserve, which would include Bitcoin, Ethereum, XRP, Solana, and Cardano, Trump's statement has already sparked a surge in cryptocurrency prices. Following the announcement, Bitcoin's price rose by 10%, while Cardano's price soared by over 60%.

The administration is also planning to announce a new policy initiative at the Crypto Summit on March 7, which could have a major impact on the cryptocurrency market.

However, in a recent podcast on Milk Road, Mark Yusko, founder of Morgan Creek Capital Management, expressed skepticism about the inclusion of cryptocurrencies other than Bitcoin in the administration's plans.

"Everyone's talking about how the administration is going to announce a Bitcoin reserve, which I think is going to be a good thing, but why would they also be putting in, like, XRP and Cardano?" Yusko asked.

Bitcoin is a superior form of money, according to Yusko, as it's an asset without any liabilities. Traditionally, gold has been the standard example of such an asset, rendering it valuable despite having no inherent liabilities or claims against it. In essence, gold is a commodity and currency, making it a stronger form of money.

"Bitcoin is like digital gold, it's a commodity and currency, making it an even better form of money," Yusko explained.

According to Yusko, including cryptocurrencies like Ethereum and Solana in the strategic reserve might be useful for their smart contract capabilities, potentially acting as second or third layers on top of Bitcoin.

"Maybe they're going to put in, like, Ethereum and Solana, which I could see the use case for, as they're like second or third layers for Bitcoin. But like, XRP and Cardano, I don't get it at all," Yusko added.

Yusko further explained that throughout his years in venture capital, no one has ever pitched him a project based on XRP or Cardano.

"I mean this semi-respectfully, but I've been doing venture capital in the digital space now for seven years. Not once, not once have I ever had a team come pitch me a deal building on either one of those chains [XRP and ADA]. I've had lots of people pitch me on Ethereum and Solana, tons of people pitch me on Bitcoin, but not one on either one of those two chains," Yusko said.

Yusko believes that some people might see value in these coins, but to him, they seem like products of a big pre-mine, designed to make people rich by selling them to the public.

"Like, I might get a chain-link or a solana, but no one's coming to me pitching a new project on either one of those chains because they have no utility. The only utility is that someone paid millions to both political parties to try and get their coins recognized," Yusko stated.

Regarding Trump's interest in these coins, Yusko speculates that it might stem from his affiliates owning a large amount of these coins. In this case, Trump's actions could be viewed as favorable towards his own financial interests.

"I think what's going to happen is that they're going to announce a Bitcoin reserve and then maybe make some favorable comments about other cryptocurrencies, possibly including tax breaks for them," Yusko said.

The upcoming announcement from the administration could be a turning point for the future of Bitcoin and crypto regulations.