Donald Trump’s team considering XRP, Solana, and USDC strategic reserves – Crypto News – Crypto News
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Donald Trump’s team considering XRP, Solana, and USDC strategic reserves – Crypto News

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1 year ago

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  • Trump’s team eyes XRP, Solana, and USDC reserves as part of the “America-first” policy.
  • The move aims to boost US crypto innovation.
  • However, the move has some wondering whether it will be at the expense of the promised Bitcoin reserve.

Donald Trump’s transition team is actively considering the establishment of strategic reserves for certain digital currencies besides Bitcoin. Sources reveal that the focus is on US-based cryptocurrencies such as XRP, Solana, and the stablecoin USDC, aiming to bolster America’s position in the global crypto market.

This initiative comes as part of Trump’s broader “America-first” policy, which, in the realm of digital finance, could mean a significant shift towards recognizing and supporting cryptocurrencies that originate within the US.

The idea of creating strategic reserves for these assets is seen by some as a way to foster innovation and maintain US dominance in emerging financial technologies.

XRP, Solana, and USDC are all by US-based firms

XRP is associated with Ripple Labs, a cross-border payment company based in San Francisco. Solana (SOL), on the other hand, is associated with Solana Labs which is also based in San Francisco, while USDC is associated with Circle which is headquartered in Boston, Massachusetts, United States.

The inclusion of XRP, which has been embroiled in legal battles with the SEC, could indicate a potential shift in regulatory attitudes under Trump’s administration.

Ripple’s CEO Brad Garlinghouse and other key figures have reportedly engaged with Trump, suggesting a possible thaw in the frosty relations between the crypto sector and regulatory bodies.

Solana, known for its high throughput and being a competitor to Ethereum, along with USDC, one of the most widely used stablecoins pegged to the US dollar, are also under consideration. This move could encourage further development and adoption of these platforms by providing them with a form of governmental endorsement or at least, recognition.

The anticipation around these developments is palpable, with the crypto industry on high alert for any executive orders or policy announcements that might come from the Trump administration upon his inauguration on January 20.

The sector is particularly hopeful for regulatory changes, including the possible repeal of SAB 121, which could open up more avenues for banks to engage with crypto assets.

As we move closer to the inauguration, all eyes will be on whether these strategic reserves will actually be approved and how they might shape the future of cryptocurrency in the US, potentially heralding a new chapter for digital finance under Trump’s leadership.

Does this mean Bitcoin could be sidelined?

However, this strategy has sparked debate within the crypto community. While some celebrate the potential for increased legitimacy and support for US-based digital currencies, others express concern that this focus might sideline Bitcoin, the original and most recognized cryptocurrency.

There’s a worry that such policies might skew market dynamics in favour of these selected altcoins, potentially impacting the decentralized ethos that many in the crypto space hold dear.

However, there are no signs that the transition team is sidelining Bitcoin. Besides, Donald Trump had initially proposed the creation of a Bitcoin reserve during the campaigns. Only time will tell how all this plays out, especially with less than four days remaining for Donald Trump to take the oath of office.

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