The U.S. has announced steps toward the creation of a new reserve for cryptocurrency to bolster national dominance in digital assets. This initiative appears to be slated to encompass the most familiar cryptocurrencies and some lesser known cryptocurrencies as well.
Which cryptocurrencies are included in the U.S. crypto reserve?
Following a January executive order, the U.S. appears to be moving forward with its cryptocurrency reserve plan, signaling a major push toward incorporating digital assets into its financial framework. Announced by Trump on March 2, the Crypto Strategic Reserve will include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL) and Cardano (ADA). Among the cryptocurrencies announced as part of the new strategic crypto reserve, Tether (USDT), USD Coin (USDC) and Binance Coin (BNB) were notably absent.
News of the reserve set off a short-lived but intense surge in trading. Bitcoin, the leading cryptocurrency by market value, hit a peak over $94,00 upon the announcement Sunday, and Ethereum surged to over $2,500. One of the smaller tokens, Cardano, managed a gain of more than 60% over the weekend. The total cryptocurrency market rose by approximately 10%, adding over $350 billion in value within hours of the announcement. However, the overall market cap is still under what it was a month ago, even with these recent surges.
The concept had already taken shape earlier this year, with reports of a plan for a “strategic national Bitcoin” stockpile that would include Bitcoin seized by the U.S. government in law enforcement actions. The U.S. government already holds approximately $17 billion in Bitcoin, making it one of the largest Bitcoin holders in the world. Despite this being the first official plan for the government to hold multiple cryptocurrencies, uncertainties remain regarding the scale of holdings and the possible inclusion of other assets.
Crypto leaders push for Bitcoin-only model
Coinbase CEO Brian Armstrong, reportedly the richest American in crypto, with a net worth estimated around $9.6 billion, advocated for a Bitcoin-only reserve as a more straightforward strategy. Bitwise CEO Hunter Horsley echoed this view, stating, “Bitcoin is the undisputed store of value for the digital age.”
Unlike Bitcoin, which has established itself as a relatively stable store of value, altcoins tend to be far more volatile. Legal battles with the U.S. Securities and Exchange Commission (SEC) have plagued many cryptocurrencies, including XRP and Solana. Though many cases have recently been dropped, the commission’s lawsuit against Ripple, in particular, remains active as it pursues an appeal. Holding assets like these in a government-backed reserve could create new legal complications and damage public trust.
As all nations race for dominance in crypto prosperity and blockchain resilience, the reserve still stands as a crucial asset for the U.S. in the push to become the global crypto capital. Supporters argue it could enhance stability, foster long-term trust and security in digital assets and pave the way for clearer regulation and broader accessibility, ensuring wider participation in the crypto economy. Those less idealistic say it could lead to favoritism and overreach.
There are clear benefits though. The U.S. government’s crypto holdings could serve as a market mediator, stepping in during volatile times to stabilize prices and protect investor confidence. With the ability to buy and sell digital assets strategically, the government could reduce sharp fluctuations and lower the risk of market crashes. This hands-on approach would not only shield investors, but also create a more predictable and secure market.
Is the U.S. crypto reserve a step toward stability?
From within the crypto bubble, it is easy to see why some are doubtful—the crypto and digital market was built to operate independently and free from mainstream intervention. Though the reserve could introduce significant oversight and protections, it may still fall short in preventing market manipulation from the top. With so many uncertainties at play, it’s difficult to claim with confidence that the reserve will be a steadfast force in building long-term trust.
Even without government involvement, the crypto market still faces battles of its own in trust and security. Since cryptocurrency first gained recognition in 2009, the industry has grappled with countless hacks and fraud incidents. In 2024 alone, over $2 billion was stolen, marking the fourth straight year of billion-dollar losses. The U.S. crypto reserve may promise oversight, but with years of billion-dollar losses and cautious public interest, trust remains a currency yet to be earned. While the new reserve seeks to bring order, its true test will be curbing manipulation, preventing fraud and restoring faith in an industry poised for massive growth.
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