US president Donald Trump’s plans for a strategic cryptocurrency reserve are good news for the industry, but they are not in exchange for clearer regulation, Patrick Young, go-to-market lead with the Web3 App Galxe, told Cointelegraph on March 3.
In a March 2 post on the social media platform Truth Social, Trump said he told his administration’s Digital Assets Working Group to include XRP (XRP), Solana (Sol) and cardano (Ada) in a US government stockpile.
Later he added Bitcoin (Btc) and ether (Eth) In that list, saying they are in the “heart of the reserve.”
Trump has toured plans for a US strategic crypto reserve since mid-2024.
Source: Donald Trump
Trump’s declaration caused a temporary spike in the prices of cryptocurrencies mentioned in his post. Bitcoin recovered above $ 90,000 before refusing to nearly $ 87,000 at the time of publication.
Ada gained more than 40% in the first 24 hours after Trump’s announcement.
“The more industrial regulations we all expect will be followed, is likely to be a longer driver” of crypto performance, Young said.
Trump has appointed the leadership of the friendly industry to major regulatory agencies, including the Securities and Exchange Commission. The agency has Advanced that many applications For us the crypto products that have been stabbed under the previous administration.
“Everyone in Crypto expects to see what will come from a new leadership with the US Securities and Exchange Commission, particularly clear guidelines around what makes a security form,” Young said.
In February, the SEC said Memecoins are unlikely security.
Related: President Trump said to include Crypto Reserve to include BTC, ETH, Sol, XRP, Ada
Dangers in Altcoin
Trump’s integration with the Altcoins, such as XRP and ADA, has led to “accusations that Donald Trump may have attempted to increase his own crypto wealth in the move,” Young added. Trump has accumulated various altcoins by creatures under his control.
It also exposes the planned crypto reserve to centralization risks, according to Adam O’Brien, CEO of crypto educator Bitcoin.
“If we go for centralized properties, why not include blue-chip stocks?” O’Brien told Cointelegraph, and added, “This is a slippery slope that we go down when we move to centralized possession and away from protocols.”
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