President Donald J. Trump has announced his intention to establish a U.S. Crypto Strategic Reserve, which he claims will strengthen America’s position as a leader in digital assets. 

In a recent post on his social media platform, Trump stated that the reserve could include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). 

The announcement has sparked debate among many on X about its feasibility and potential implications.

Assessing the Feasibility of a Crypto Reserve

One of the most immediate questions surrounding Trump’s proposal is whether the president has the authority to unilaterally determine which cryptocurrencies would be included in a government-backed reserve. 

While the president can direct a working group to explore the feasibility of such a reserve, any formal implementation would likely require reports from regulatory agencies and congressional approval.

Among those weighing in on the issue is Samson Mow, CEO of JAN3 and a prominent Bitcoin advocate, who shared a detailed thread on X analyzing the potential implications of Trump’s statement. 

In his view, the reserve is likely to take one of two possible paths:

"1) The reserve is $BTC and none of the mentioned altcoins actually make it in 

2) We're going to accelerate into degeneracy unlike anything seen before"

Mow also raised questions about the selection of XRP, SOL, and ADA, suggesting that lobbying efforts or political considerations could have played a role in their inclusion. He further noted unusual market activity preceding Trump’s announcement, stating:

"There definitely was some leak that allowed some traders to frontrun the news - but that could be a leak from whoever manages his social account, or the platform itself."

Potential Criteria for a Crypto Reserve

If a U.S. Crypto Strategic Reserve were to be established, Mow argues that specific selection criteria would be necessary to ensure financial stability and security. 

He outlined several possible requirements, including:

  • Reserve assets must be based on Proof of Work (PoW) to ensure fundamental integrity and assurance of immutability.
  • Reserve assets must be dominant in their hashing function to ensure resistance to attacks.
  • Reserve assets must not be merged mined or dependent upon the security of another asset.
  • Reserve assets cannot have a premine or allocation to insiders.
  • Reserve assets must have been existing and operational for at least 10 years.
  • Reserve assets must not be securities, and if there are reasonable doubts, further investigations must be undertaken.
  • Reserve assets must be able to be secured in cold storage utilizing multisig systems that do not involve blind signing.
  • The blockchain of the reserve asset must be fully intact and verifiable from the genesis block.

Under these conditions, Bitcoin (BTC) would almost certainly qualify, and Litecoin (LTC) and Monero (XMR) could also be considered. 

However, Mow argues that Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) do not meet these criteria and would likely be excluded.

He summed up this perspective by stating:

"One does not simply buy a bunch of shitcoins for a country."

Political and Economic Considerations

Beyond the technical considerations, Trump’s proposal carries broader economic and geopolitical implications. 

The Presidential Working Group on Financial Markets, which includes the Treasury Department and Federal Reserve, would need to conduct a thorough review before making recommendations.

Mow warns that if Trump’s administration arbitrarily selects cryptocurrencies for the reserve, it could erode trust in the U.S. financial system and lead to unpredictable consequences:

"If Trump can somehow just unilaterally pick random shitcoins to put into a national reserve, well, that is just very bad for the US. Things stop making sense. It's now a free-for-all."

He further noted that specific inclusions could benefit certain industry players, stating:

Mow also pointed out a potential conflict of interest involving David Sacks, whom Trump recently appointed as his Crypto Czar and who holds a significant stake in Solana.

"Even if David divested, perception matters because it cannot appear that assets are being cherry picked to benefit certain people or companies."

Next Steps and Unanswered Questions

While Trump’s announcement has generated significant discussion, the formation of a U.S. Crypto Strategic Reserve remains a long-term policy discussion rather than an imminent reality. The regulatory and legislative process to create such a reserve would take time, and the final selection of assets would likely depend on factors such as national security, financial stability, and political considerations.

Some of the key unanswered questions include:

  • Which government department will oversee the reserve?
  • How will the reserves be secured? Self-custody or third-party custodians?
  • What procurement process will be used for acquiring the assets?

As discussions progress, policymakers and financial institutions will need to establish clear frameworks to ensure that any national cryptocurrency reserve aligns with broader U.S. financial and economic interests.

For now, the future of the U.S. Crypto Strategic Reserve remains uncertain. 

However, the proposal signals a growing recognition of cryptocurrency’s role in national financial strategy.

As Mow concluded in his thread:

"Plan accordingly."

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