US President Donald Trump’s plans for a strategic cryptocurrency reserve are good news for the industry, but they are no substitute for clearer regulation, Patrick Young, go-to-market lead at 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 crypto stockpile.
He later added Bitcoin (BTC) and Ether (ETH) to that list, stating they would be at the “heart of the reserve.”
Trump has touted plans for a US strategic crypto reserve since mid-2024.
Source: Donald Trump
Trump’s declaration caused a temporary spike in the prices of the cryptocurrencies mentioned in his post. Bitcoin recovered above $90,000 before declining to around $87,000 at the time of publication.
ADA gained more than 40% in the first 24 hours after Trump’s announcement.
“The more industry-friendly regulation that we all hope will follow, though, is likely to be a longer-term driver” of crypto performance, Young said.
Trump has appointed industry-friendly leadership to key regulatory agencies, including the Securities and Exchange Commission. The agency has advanced numerous applications for US crypto products that had stagnated under the prior administration.
“Everyone in crypto looks forward to seeing what will come from a new leadership at the US Securities and Exchange Commission, particularly clear guidelines around what constitutes a security,” Young said.
In February, the SEC said memecoins are likely not securities.
Related: President Trump says crypto reserve to include BTC, ETH, SOL, XRP, ADA
Altcoin risks
Trump’s inclusion of altcoins, such as XRP and ADA, has sparked “accusations that Donald Trump may be attempting to increase his own crypto wealth with the move,” Young added. Trump has accumulated various altcoins through entities under his control.
It also exposes the planned crypto reserve to centralization risks, according to Adam O’Brien, CEO of crypto educator Bitcoin Well.
“If we’re going to go for centralized assets, why not include blue-chip stocks?” O’Brien told Cointelegraph, adding, “It’s just a slippery slope that we’re down when we move towards centralized assets and away from protocols.”
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