CaryptosHeadlines Media Has Launched Its Native Token CHT.
Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT.
Join the Airdrop at the official website,
CryptosHeadlinesToken.com
Betting on cryptocurrency has become one of the “chips” of the current US President Donald Trump, thanks to which he managed to win the election 2024. The support of the cryptocommunity helped the politician to climb back into the chair of the head of America, but the cryptans did not act selflessly.
The fact is that as part of the election campaign, Trump promised a lot to the participants of the cryptocommunity – to support miners and to free cryptocompanies from prosecution. But the “cherry” on the “cake” of the politician’s promises was the plan to form a bitcoin reserve in the United States.
Where It All Started
Donald Trump talked about creating a U.S. bitcoin reserve in late July 2024 at the Bitcoin 2024 conference in Nashville. He has promised that if he wins the election, he will fire Securities and Exchange Commission (SEC) Chairman Gary Gensler and also ban the sale of bitcoins owned by the US government.
Trump emphasized that his administration will maintain a 100% reserve of all bitcoins held or to be acquired by the government, and these bitcoins will be the basis of a strategic national stockpile.
Gensler has already lost his chair. Under the new leadership, SEC has begun to give up prosecuting cryptocurrency companies. The only thing left to do is to create a reserve.
What Is The Essence Of A Bitcoin Reserve
The essence of the initiative to create a bitcoin reserve in the United States is to form a federal reserve that will include 1 million bitcoins (BTC), which would amount to about 5% of the total cryptocurrency issuance. The idea was proposed by Senator Cynthia Lummis. It was planned to be implemented through a bill known as the BITCOIN Act of 2024.
Here are the key points of the initiative:
- Bitcoins could be purchased with other assets, such as “gold certificates,” with their value revalued.
- The sale of cryptocurrency will be “frozen” for 20 years.
- The initiative was supported by many prominent members of the crypto community, such as Samson Mouw, CEO of Jan3 and ex-Blockstream, as well as Michael Saylor – ex-CEO of MicroStrategy.
The main purpose of creating a bitcoin reserve is to pay off the U.S. national debt. Lummis believes that long-term investments in BTC can significantly improve the country’s financial situation, as well as strengthen its position in global financial markets. Similar to gold reserves.
If the initiative is realized, it could be an important step for the cryptocurrency, similar to the actions of other countries, which could also accelerate its appreciation in the long run.
Amid Trump’s attempts to lobby for the initiative, the authorities of many US states tried to form local bitcoin reserves. As of the time of writing the review, 5 states have rejected the initiative. In many states, the project is under review.
First Steps
On January 24, 2025, Donald Trump signed an executive order aimed at boosting the crypto industry in the US, which included the creation of a cryptocurrency working group. It was headed by David Sachs, the White House adviser on artificial intelligence and cryptocurrencies.
The main task of the group was to assess the prospect of creating a strategic reserve of digital assets, including cryptocurrencies confiscated in enforcement actions. Within 180 days, the panel is expected to make recommendations on the regulation of digital assets, including stablecoins, and propose legislative changes.
The executive order also prohibited federal agencies from issuing or promoting central bank digital currency (CBDC). Trump emphasized the importance of cryptocurrencies as a tool for innovation and economic development, saying they play a key role in protecting citizens’ rights to financial freedom.
Bitcoin, Move Over
On March 2, 2025, Donald Trump unexpectedly announced that the US national cryptocurrency reserve will include altcoins such as XRP, SOL and ADA in addition to bitcoin. Previously, it was exclusively about BTC, which made its new announcement a surprise to the market.
In his post, Trump noted that BTC and ETH, as well as other important cryptocurrencies, will form the basis of the reserve, adding that the goal of the project is to make the US the world capital of cryptocurrencies. On the back of this statement, the coins mentioned by Trump immediately showed growth.
Criticism of the reserve and problems
The US national cryptocurrency reserve that Donald Trump has proposed faces a number of problems. Here are the main ones:
- Uncertainty with the choice of assets. Initially, only bitcon was discussed. However, Trump expanded the list by adding altcoins such as XRP, SOL, ADA and ETH. This has raised concerns that the reserve will become less stable.
- Dependence on political factors. The inclusion of altcoins may be linked to political motivations. Trump may be pleasing lobbyists who supported him in the election.
- Problems with asset selection criteria. Some altcoins, such as XRP and Solana, do not meet the standards required for a strategic reserve. This could reduce confidence in the U.S. financial system.
- Conflict of interest. The members of the working group developing the crypto reserve plan have personal interests. For example, David Sachs is an investor in Solana. He can lobby for his interests in the formation of the reserve.
- Unresolved organizational issues. It is not clear who will control the reserve and how the assets will be secured. Without a clear structure, project implementation may face difficulties.
The creation of the US cryptocurrency reserve faces legal and organizational problems. The issues need to be resolved before further implementation of the project.
Accusations of Market Manipulation
Peter Schiff, an economist and prominent cryptocurrency critic, has criticized Donald Trump’s plans to create a US cryptocurrency reserve. He claims it was a deliberate move to organize a “pump and dump” scheme. Schiff noted that Trump’s announcement to include altcoins such as XRP, SOL and ADA in the reserve caused a surge in the prices of those coins that didn’t last long. The Economist accuses Trump of manipulation to benefit insiders who may have had advance knowledge of the news.
Schiff called for an investigation. He is pushing for an audit of cryptocurrency purchases before the news release. He also wants to find out who profited from the quick exit from the market.
And market participants believe that thanks to the news about the cryptocurrency reserve, the market can be manipulated by the politician’s son, Eric Trump.
What happens if Trump succeeds in creating a bitcoin reserve
If Donald Trump succeeds in creating a bitcoin reserve in the United States, it could significantly affect the bitcoin rate and the overall state of the cryptocurrency market. Analysts predict a significant increase in the value of BTC, given the massive purchases of cryptocurrency by the US government. However, it should be noted that such forecasts are speculative and do not guarantee a certain result.
The creation of a national bitcoin reserve could also change the current market cycles. Typically, the cryptocurrency market is subject to four-year cycles of growth and decline (thanks to halvings). Constant government demand can offset these cycles, ensuring stable price growth.
However, the risks associated with bitcoin’s high volatility must also be considered. The introduction of such an initiative could lead to unpredictable consequences, including the impact on financial stability and possible cyber threats. Therefore, while the creation of a bitcoin reserve may offer new prospects for the cryptocurrency market, it is important to carefully assess all potential risks and benefits.
