Author: Weilin, PANews

On the evening of March 2, US President Trump announced on Truth Social the asset categories of the crypto asset strategic reserve, including XRP, SOL, ADA, and he later added that Bitcoin (BTC) and Ethereum (ETH) as other valuable cryptocurrencies will also be the core of the reserve.

As soon as this news was announced, the cryptocurrency market rebounded quickly, with the five major currencies generally rising. As of 8 am on March 3, the price of Bitcoin broke through $94,000, up 9.71% intraday.

Trump Announces 5 Crypto Assets for the Reserve: BTC, ETH, XRP, SOL, ADA

On March 2, against the backdrop of a generally depressed market, Trump suddenly issued a statement on the crypto asset reserve: "The US crypto asset reserve will be boosted after years of corrupt attacks by the Biden administration on this critical industry. That's why my digital asset executive order directs the presidential working group to advance a crypto strategy reserve including XRP, SOL and ADA. I will ensure America becomes the crypto capital of the world. We are making America great again!"

Subsequently, the crypto market received a significant boost. As of 8 am on March 3, Bitcoin was quoted at $94,338, up 9.71%; Ethereum was quoted at $2,513, up 13.41%; Solana (SOL) rose to $178, up 24.35%; XRP rose to $2.91, up 33%; Cardano (ADA) surged 72.16%. In addition, Trump's meme coin TRUMP also rose 25.36%.

Trump had promised to establish a "Bitcoin strategic national reserve" at the Bitcoin conference in Nashville in 2024. In the keynote speech, Trump told the audience: "If elected, my administration's policy will be to hold 100% of the Bitcoin that the US government currently holds or will acquire in the future."

On January 23, in the first week of his presidency, Trump signed a crypto executive order as president, directing the digital asset working group to study the feasibility of establishing a national crypto reserve and explore the regulatory framework for stablecoins.

"President Trump has announced the creation of a crypto strategic reserve composed of Bitcoin and other top cryptocurrencies. This is consistent with Executive Order 14178 that he issued in his first week," David Sacks, the White House's AI and Crypto Affairs lead, wrote on the X platform. He added, "More news will be released during the summit."

It is reported that President Trump will attend the first White House Crypto Summit on March 7 and deliver a speech. Attendees will include well-known founders, CEOs and investors from the crypto industry, as well as members of the President's Digital Asset Working Group. The summit will be hosted by White House AI and Crypto Czar David Sacks and managed by Working Group Executive Director Bo Hines.

Tilting Towards Multiple Assets, Is There 'Interest Transfer'? Implementation Remains to Be Clarified

Although the latest developments in the crypto asset strategic reserve have boosted the market, some industry insiders have questioned Trump's crypto reserve plan. Particularly, the inclusion of ADA has sparked some unexpected reactions. According to @CryptoDoggyCN, in early February, ADA founder Charles Hoskinson hinted in a live stream that he would meet a big shot. On February 27, he posted that he would not be going to ETHDenver, but would be going to Florida, where Trump's Mar-a-Lago estate is located. @CryptoDoggyCN believes that the selection of ADA may have been influenced by a kind of lobbying.

Some influential figures in the tech and crypto industry have criticized Trump for including cryptocurrencies other than Bitcoin in the reserve. AngelList co-founder Naval Ravikant wrote, "US taxpayers should not be bailing out nominally decentralized cryptocurrencies." He added, "If it has lobbyists, it's not decentralized." Aave founder Stani Kulechov also wrote, "Good news: Strategic crypto reserve in the works; Bad news: Lacking DeFi; Ugly news: XRP, SOL and ADA."

Mint Ventures research partner Alex Xu analyzed that SOL, XRP, and ADA have been frequenting Mar-a-Lago since Trump took office, and have also provided a lot of overt sponsorship, such as inauguration fund donations, etc. Covert interest transfers are likely to increase. Trump is also returning the favor this time, arranging an "advertising slot" within the president's authority. However, in the long run, projects like ADA and XRP being used as reserve assets will only weaken the seriousness of the BTC strategic reserve, further reducing the possibility of the BTC reserve bill being passed at the federal level. Getting the working group to advance the work is one thing, but succeeding at the legislative level is another. The Republican majority in the House is very weak, and they simply won't have the ability to get SOL, ADA, and XRP through legislation and into the national reserve. The only possibility is if Trump establishes a sovereign wealth fund directly under the Treasury Department through the executive branch, then he can directly purchase the above assets without going through federal legislation. But how likely is that? How much interest will SOL, XRP and ADA have to transfer to the Trump family to get the president to explicitly order the use of taxpayer money to buy these things?

In addition, some industry insiders have pointed out that in the past few months, when Trump has mentioned related policies, the words "reserve" and "stockpile" have been used interchangeably, but there are some key differences between them. Rebecca Rettig, Chief Legal Officer of Jito Labs, said, "As I understand it, stockpiling means the government will hold the crypto they've accumulated through various cases, while a reserve is ultimately what the Treasury decides to purchase and hold."

Analyst Chen Jian Jason said on the X platform that one very uncertain factor in the overall crypto asset strategic reserve plan is how to complete the reserve? In line with Trump's businessman's extremely selfish style, he has always adhered to the principle of getting something for nothing, so it's hard to expect him to dig into his own pocket to buy and complete the reserve and then "pump the market". With the US fiscal deficit reaching $1.83 trillion, the landlord's family has no more money, so Trump is most likely to complete the reserve in a way that doesn't require spending money, such as requiring the government's own BTC not to be sold anymore, allowing crypto-related companies to use BTC for tax payments, or even through donations.

He said that in the future, APT, SUI, MOVE, etc. may be included in the reserve. If no money is spent to complete the reserve, then the nature of this positive news is essentially just locking up, i.e. the funds flowing into the strategic reserve will not be sold for a long time, such as offsetting the previous market concerns about the US government dumping to depress the market, rather than really pumping in money like BlackRock and MicroStrategy.

Nevertheless, on March 3, CZ, the former CEO of Binance, posted on the X platform to express his observations on the current market, which is now clearly dominated by "US Coins", and they have driven the development of crypto, and he is glad to see any progress in crypto adoption, with the industry as a whole benefiting and continuing to build.

Coinbase co-founder and CEO Brian Armstrong said on the X platform when talking about investment strategy: "I think just investing in Bitcoin may be the best choice - the simplest, and with a clear logic as the successor to gold; if people want more diversified options, they can build a market cap-weighted crypto asset index to maintain impartiality. But the first option may be the simplest."

At present, the five major categories of crypto assets announced by Trump have injected an optimistic sentiment into the market, but their implementation and specific effectiveness still need to be tested over time, and the future market will further validate them. PANews will closely follow the subsequent developments.