US Crypto Reserve Plan and its Impact on Crypto Market

Jakarta, Pintu News – President Donald Trump recently announced the creation of the Strategic Crypto Reserve (SCR), a national crypto reserve that aims to increase the role of cryptocurrencies in the United States economy.

The announcement had an immediate impact on the markets, causing a surge in the prices of several major digital assets, including Bitcoin (BTC) and Ethereum (ETH). However, the move also drew pros and cons from various parties within the crypto community and the traditional financial sector.

Impact of SCR Announcement on Cryptocurrency Market

The announcement was immediately met with a price surge in the crypto market. Bitcoin (BTC) rose 10% to IDR 1,554,637,110, after earlier dropping to a three-month low of below IDR 1,319,120,000. Ethereum (ETH) jumped 13%, while Cardano (ADA) recorded the biggest gain with a jump of more than 60%. Ripple (XRP) and Solana (SOL) also saw gains of 33% and 25% respectively.

Donald Trump confirmed that this crypto reserve will include BTC, ETH, XRP, Solana (SOL), and ADA. This move is considered an attempt to strengthen the crypto industry after previously experiencing policy pressure during the Biden administration. Moreover, this decision shows a significant difference between Trump’s pro-crypto policy and the strict regulatory approach applied previously.

Also Read: Why is Ripple Still Fighting in Court Despite SEC Dropping Another Crypto Case?

Difference between “Crypto Reserve” and “Crypto Stock”

One interesting aspect of this announcement is the use of the term “crypto reserve” rather than “stockpile”. A crypto reserve means that the government is actively buying digital assets within a certain period of time, while a stockpile simply means holding assets that have been acquired through confiscation or other legal actions.

The reserve concept was first introduced by Trump at the Bitcoin 2024 conference in Nashville, Tennessee, where Senator Cynthia Lummis also supported the idea. Despite the uncertainty caused by Trump’s January executive order, this latest announcement has revived speculation about the role of cryptocurrencies in the US national financial strategy.

Debates in the Crypto Community

Not everyone in the crypto industry agrees with the formation of the SCR. Some investors and analysts have welcomed the move, taking it as a positive signal towards crypto adoption by the government. However, there are also those who question its impact in the long run.

One of the main debates is the type of cryptocurrency that should be included in the reserve. Some argue that only Bitcoin (BTC) should be included due to its most decentralized and secure nature. However, the presence of XRP, SOL, and ADA in the official list raises the question of whether the government should have chosen certain digital assets to include in the national reserve.

On the other hand, there are groups that reject the idea of a crypto reserve entirely. They are concerned that digital assets owned by the government could be resold in the future to cover the country’s budgetary needs, which could lead to unexpected market volatility. In addition, there are concerns that large holdings of cryptocurrencies by governments could undermine the principle of decentralization that is the main basis of blockchain technology.

Outlook and Next Steps

Trump’s decision to establish this crypto reserve has the potential to change the dynamics of the relationship between the traditional financial sector and the crypto industry. Some analysts think that this move could be the beginning of further integration of cryptocurrencies in US economic policy. However, how the implementation of this policy will go is still a big question mark.

In the near future, Trump is scheduled to hold the first White House Crypto Summit on Friday, which will likely provide more details on how this crypto reserve will operate. Investors and market participants will be watching whether this policy will attract the interest of the traditional financial sector or face further resistance from regulators.

Conclusion

Donald Trump’s creation of the Strategic Crypto Reserve (SCR) is a big step for the cryptocurrency industry. While this announcement was met with optimism by most market participants, there is still debate regarding its long-term implications.

Some see it as a great opportunity for widespread crypto adoption, while others are concerned about its potential impact on market stability and decentralization principles. With so much uncertainty remaining, the upcoming White House Crypto Summit could be a pivotal moment that determines the future direction of US crypto policy.

Also Read: XRP Faces Hurdle at $2.4: Can Bulls Break Through? (4/3/25)

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Cryptopolitan. Eric Trump Says Wall Street Must Embrace Crypto or Die After President Trump’s SCR Announcement. Accessed March 4, 2025.
• Featured Image: PYMNTS