The Trump administration's strategic crypto reserve plan has caught the attention of market participants and industry leaders, leading to significant price surges.
Community Reaction to Trump's Plan
The Trump administration introduced a strategy to construct reserves of cryptocurrencies including Bitcoin, Ethereum, XRP, Solana, and Cardano. The crypto community has been actively discussing this move, particularly since XRP is still encountering legal challenges due to a lawsuit filed by the SEC. Following the announcement, Bitcoin saw an 8% gain, while XRP, Solana, and Cardano experienced significant price increases. Despite the price surges, the inclusion of XRP remains a contentious decision among some market participants.
Arguments for a Bitcoin-Only Reserve
Several key figures in the crypto industry have shown support for constructing reserves exclusively with Bitcoin, viewing it as the most reliable digital asset. Hunter Horsely, CEO of Bitwise, along with Coinbase CEO Brian Armstrong, emphasized Bitcoin's status as the preeminent store of value in the digital age. They argue that if diversity is needed, a market capitalization-based index fund approach could provide a neutral solution.
The Ongoing Legal Dispute Over XRP
The inclusion of XRP has raised more questions for regulators due to the ongoing SEC lawsuit against Ripple. Bill Morgan noted that Ripple has decreased its escrow stock, reaching a current circulating supply of 62.33%. Attorney Jeremy Hogan indicated that a resolution could be near with both parties possibly withdrawing appeals by April, potentially concluding the case by May.
The decision to incorporate multiple cryptocurrencies in US strategic reserves has sparked differing views within the industry. Some professionals champion a Bitcoin-only reserve, while others advocate for diversification to improve the country's leadership in digital assets. Observers are closely following updates on XRP's legal status following the latest market news.
