The plans of US President Donald Trump regarding the strategic cryptocurrency reserve are good news for the industry, but they do not replace clear regulations, Patrick Newborn, leading on the market in the Web3 Galxe application, said Cointelegraph on March 3.
In the post of March 2 on the Truth Social Trump social networking platform, he said that he told the working group for the digital assets of his administration to include XRP (XRP), Solana (SOL) and Cardano (ADA) in the US government’s cryptographic concentration.
Later he added Bitcoin (BTC) and Ether (ETH) to this list, stating that they would be in “Heart of the Reserve”.
Trump advertised plans for the American strategic cryptographic reserve from mid -2012.
Source: Donald Trump
Trump’s declaration caused a ephemeral boost in cryptocurrency prices listed in his post. Bitcoin recovered over USD 90,000 before it dropped to around USD 87,000 at the time of publication.
Ada gained over 40% in the first 24 hours after Trump’s announcement.
“The more industry -friendly regulations, which we all hope, will probably be a long -term driver,” as a result of cryptocurrencies, said Newborn.
Trump appointed the industry -friendly leadership to the key regulatory authorities, including securities and stock exchanges. The agency has made many conclusions for American cryptographic products that have stagnated under the previous administration.
“Everyone in Crypto is looking forward to seeing what comes from the new leadership in the American Securities and Stock Exchange Commission, particularly clear guidelines for what is security,” said Newborn.
In February, Sec said that memecoins are probably not securities.
Related: President Trump says that the cryptographic reserve included BTC, ETH, SOL, XRP, ADA
Altcoin risk
The inclusion of Trump into Altcoins, such as XRP and Ada, caused “accusations that Donald Trump can try to increase his own wealth of cryptocurrencies with movement,” added Newborn. Trump accumulated various altcoins through entities under his control.
According to Adam O’Brien, the general director of Bitcoin Bitcoin, also exposes the planned cryptographic reserve at the risk of centralization.
“If we intend to choose centralized assets, why not include Blue Chip stocks?” O’Brien told Cointelegraph, adding: “It’s just slippery slope that we’re down when we are approaching centralized assets and from protocols.”
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