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crypto.news 2025-03-03 14:57:31

Trump’s cryptocurrency reserve proposal ‘lacks details’: pro

President Donald Trump has announced the creation of a “Crypto Strategic Reserve” that will include five digital assets. This announcement builds on various promises made by Trump’s campaign, including establishing the United States as the “crypto capital of the world” and strengthening the country’s financial infrastructure. The suggested crypto included Bitcoin ( BTC ), Ethereum ( ETH ), Ripple ( XRP ), Solana ( SOL ), and Cardano ( ADA ). Andrew O’Neill, Digital Assets Managing Director at S&P Global Ratings, provided insights on Trump’s latest announcement. O’Neill noted that Bitcoin stands out as an alternative monetary asset and can stand as a hedge against long-term currency debasement and supporting debt sustainability. He stated: “In the context of a sovereign’s investments, the narrative for allocating some portion to BTC is similar to gold, for hedging against long-term currency debasement and supporting debt sustainability,” You might also like: Tether targets ‘full financial audit’, hires Simon McWilliams as CFO Non-Bitcoin adoption The other cryptocurrencies in the proposed reserve serve different purposes . Ethereum and Solana focus on technological adoption, enabling decentralized applications and smart contract functionalities. Meanwhile, Cardano and XRP are considered more speculative investments due to their relatively lower adoption rates. O’Neill highlighted that investing in these assets differs significantly from Bitcoin, as technology venture investments are less common for sovereign entities. “Investing in these assets differs significantly from BTC and tech venture investment is less common for sovereigns,” O’Neill said. “Prior to the election, Senator Lummis proposed a bitcoin strategic reserve with specifics, including a long holding period of at least 20 years and funding from revaluing the Fed’s existing gold certificates.” Lummis’ proposal envisioned the U.S. Treasury acquiring one million Bitcoins over five years, with a mandated holding period of at least 20 years, aiming to bolster America’s balance sheet and ensure transparent management of Bitcoin holdings. Her proposal also suggested funding the Bitcoin purchases through methods such as revaluing the Federal Reserve’s gold certificates. You might also like: ZachXBT alerts investors to Ripple’s Chris Larsen XRP addresses holding $7.18B Lack of details Unlike Lummis’ structured plan, Trump’s proposal has yet to provide details on the size, timing, or management of the Crypto Strategic Reserve. O’Neill pointed out that without these specifics, it remains difficult to assess the potential impact and implementation strategy of the initiative. “Yesterday’s proposal lacks details on size, timing, and whether it will be managed by the Federal Reserve or another new or existing entity,” O’Neill stated. You might also like: Core Scientific onboards ex-Morgan Stanley veteran as CFO

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