As speculation builds around the incoming Trump administration’s stance on cryptocurrency, Solana (SOL), XRP, and Hedera (HBAR) are seeing notable gains. Reports suggest that Trump may be considering an “America-first strategic reserve” that could include these tokens, alongside Bitcoin (BTC). However, some experts are cautioning against such moves, questioning the potential consequences of government intervention in the crypto market.
Solana, XRP, and HBAR See Big Gains
On Thursday, multiple altcoins saw impressive gains, partly fueled by a report from the New York Post suggesting that Trump is “receptive” to the idea of creating a strategic reserve of digital assets. Among the tokens mentioned were Solana (SOL), XRP, and USDC, the stablecoin issued by Circle.
Following the report, Solana surged more than 8%, reaching $217. XRP continued its upward momentum from earlier in the week, hitting $3.35, just shy of its 2018 record price, according to CoinGecko. Hedera’s HBAR also spiked over 10%, reaching its highest price since early December, despite not being specifically mentioned in the report.
The collective surge of these altcoins helped the CoinDesk 20 Index climb 5% over the last 24 hours, far outpacing Bitcoin, which saw a modest 0.5% increase, hovering just below $100,000.
Trump’s Potential Role in Shaping Crypto Policy
Anticipation is building ahead of Trump’s inauguration next week, with many speculating about the possibility of executive orders targeting the cryptocurrency sector. During his campaign, Trump expressed a desire to make the U.S. a leader in the crypto space and hinted at creating a national stockpile of Bitcoin. Additionally, Senator Cynthia Lummis introduced the BITCOIN Act in July, proposing the acquisition of 5% of Bitcoin’s total supply, and some U.S. states have considered or passed legislation to create a Bitcoin reserve.
Reports now suggest that Trump could extend this vision to other cryptocurrencies, with the New York Post highlighting his “receptiveness” to creating a strategic reserve that would include tokens like XRP and Solana.
Experts Raise Concerns About Government Intervention
While some in the crypto community are excited about the prospect of the U.S. government buying tokens other than Bitcoin, not everyone is on board. Several market observers have expressed concerns over the potential consequences of such a move.
Quinn Thompson, founder of the hedge fund Lekker Capital, dismissed the idea as “ridiculous” and asserted that it would never come to fruition. In a post on X (formerly Twitter), Thompson stated, “It’s not the government’s place to be making venture capital bets on altcoins.” He further explained to CoinDesk, “This rumor of a strategic reserve for other, non-BTC coins is another example of where people are taking what otherwise is a bad idea and running with it as fact.”
Anthony Georgiades, general partner at Innovating Capital, also voiced skepticism. While he acknowledged that promoting U.S.-based innovation is a positive development, he warned that nationalizing digital assets could undermine the decentralization that is central to blockchain technology. “As it stands today, there’s truly only one token that is sufficiently and purely decentralized, and that is Bitcoin,” Georgiades stated in an interview on CoinDesk’s Markets Daily show. “These other projects all have the foundational strengths to reach that level of decentralization. This nationalization of digital assets might potentially weaken those efforts over time.”
A Divided View on the Future of Crypto Reserves
The debate over a potential U.S. crypto reserve highlights the ongoing tension between centralization and decentralization in the crypto world. While some are eager to see the U.S. government take a more active role in supporting the sector, others warn that such intervention could stifle the core principles of blockchain technology, which are founded on decentralization and transparency.
With Trump’s inauguration just days away, all eyes are on what actions the new administration will take regarding cryptocurrency policy. While the idea of a strategic crypto reserve has captured the imagination of many in the industry, its implementation—if it occurs at all—remains uncertain.
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