US President Donald Trump sent cryptocurrency prices soaring this week after he announced Bitcoin (BTC), Ether (ETH) and several other digital assets would be included in a new US strategic crypto reserve.
Bitcoin recovered above $90,000 before declining to around $87,800 at the time of publication. Cardano’s ADA also gained more than 40% in the first 24 hours after Trump’s announcement.
US Crypto Reserve Monumental For Industry
Industry experts believe that US President Donald Trump’s plans for a strategic cryptocurrency reserve is good news for the industry as a whole.
Patrick Young, market lead at Web3 app Galxe, told Cryptonews that market sentiment toward a strategic crypto reserve for the US is bullish.
“As we saw on March 2, markets rallied strongly on the news,” Young said. “This has of course been short-lived, but it does indicate that if and when the reserve is implemented we will see continued upside.”
More importantly, Young believes that a US crypto reserve indicates a huge step towards the legitimization of cryptocurrency, along with increased institutional participation.
“Should we see some major traditional financial market makers move into the space, for example, this could truly accelerate real world, mainstream adoption of crypto,” he said.
Echoing this, Dan Greer co-founder of Defi App, told Cryptonews that a US crypto reserve is a major step toward institutionalizing digital assets. He noted this signals that crypto is no longer speculative, but a legitimate part of the global financial system.
“Historically, when the US backed its currency with gold, it provided economic stability and trust,” Greer said. “A similar move with crypto could cement Bitcoin and other digital assets as foundational financial instruments.”
Beyond the US, Greer pointed out that a national crypto reserve could accelerate worldwide adoption. He noted that other countries might feel pressure to develop their own digital asset reserves to remain competitive.
“This mirrors how global financial markets adapted to the dominance of the US dollar in reserves over the past century,” he said. “Countries already exploring Bitcoin adoption, like El Salvador, could be validated, while major economies might consider adding digital assets to their balance sheets.”
Clear Crypto Legislation May Result
While a US crypto reserve will further legitimize digital assets, clear regulations may also develop as a result. Greer believes that a crypto reserve will significantly increase the likelihood of comprehensive legislation in the US.
“Historically, when the US transitioned to the gold standard, legislation quickly followed to regulate gold reserves, establish legal frameworks, and manage monetary policy,” he remarked.
Greer thinks that a similar trajectory with crypto is underway. However, Young pointed out that crypto-friendly policies from the US Securities and Exchange Commission (SEC) will be a longer-term driver of growth for digital assets and the industry at-large.
Although it’s too early to determine if legislation will develop from a US crypto reserve, Greer mentioned that clarity around digital asset classification would be notable.
“Clearly defining which cryptocurrencies are commodities versus securities will reduce legal uncertainty and prevent regulatory overreach,” he said.
This is likely already underway, as the SEC recently has agreed to dismiss lawsuits against cryptocurrency exchanges Kraken and Coinbase.
Greer added that he hopes a US crypto reserve will influence the need for self-custody rights and encourage responsible innovation.
Bitcoiners Criticize Crypto Reserve
While a number of individuals view a US crypto reserve as positive, some industry experts believe that Bitcoin should be the only asset held.
President Trump promised the creation of a strategic Bitcoin reserve during his Bitcoin 2024 keynote address. However, the narrative took a turn when Trump confirmed on social media app Truth Social that altcoins including XRP, SOL and ADA will be included. Moreover, BTC and ETH were treated like an afterthought.
According to Young, the manner of Trump’s announcement was “interesting.”
“Bitcoin and Ethereum were seeming to be an afterthought compared to the much smaller coins,” he said.
This has since attracted criticism, particularly from those affiliated with the Bitcoin community.
Lee Bratcher, President of the Texas Blockchain Council, told Cryptonews that while he isn’t a Bitcoin maximalist, he believes that the US reserve should only contain BTC.
“The Trump Administration should set an objective market cap threshold or criteria to select assets to hold in the reserve,” Bratcher explained. “If the Administration were selecting smart contract or programmable layer one blockchains, then Ethereum and Solana would be more appropriate than Bitcoin, but a reserve is designed to hold scarce and strategically important assets.”
Steven Lubka, head of Bitcoin investments for institutions at Swan Bitcoin, added that the strategic reserve should be centered around global, neutral, strategic assets that benefit the US.
“Bitcoin is the only digital asset which fits this description,” Lubka stated.
Other Challenges To Consider
Criticism aside, a number of challenges are associated with the creation of a US crypto reserve.
“A crypto reserve presents both an opportunity and a risk,” Greer said. “it could either lead to well-structured legislation that strengthens the industry, or introduce excessive government control that limits its potential.”
For instance, Greer mentioned that if the US government holds crypto, it may be tempted to introduce restrictive policies on decentralized finance (DeFi), self-custody, or private transactions.
“This could undermine the decentralization ethos that makes crypto valuable,” he said.
In order to prevent this, Greer noted that legislation should explicitly protect decentralized financial access. He added that transparency and security must be prioritized to prevent mismanagement, hacks, or misuse of funds.
Unlike gold, crypto assets are also highly volatile. With this in mind, Greer commented that a government-backed reserve could either stabilize the market or exacerbate price fluctuations, depending on how it is managed.
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