Trump's crypto reserve plan raises regulatory concerns

President Donald Trump's announcement of a strategic cryptocurrency reserve has been met with both enthusiasm and skepticism within the crypto community.

The reserve, which includes Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA), led to a temporary surge in cryptocurrency prices, with some assets rising by as much as 62%.

However, industry executives emphasise that while Trump's initiative is positive for the sector, it does not replace the need for clearer regulatory guidelines.

"The more industry-friendly regulation that we all hope will follow, though, is likely to be a longer-term driver" noted Patrick Young, go-to-market lead at Web3 app Galxe.

Trump's inclusion of altcoins like XRP and Cardano has raised concerns about centralisation risks and potential conflicts of interest.

Adam O’Brien, CEO of Bitcoin Well, questioned the logic of adding altcoins to a national reserve, suggesting it could lead to a "slippery slope" towards centralised assets.

Despite these concerns, Trump's move is seen as part of his broader strategy to align himself with the crypto sector during his re-election campaign.

His administration has appointed industry-friendly leadership to key regulatory agencies, including the SEC, which has advanced numerous applications for U.S. crypto products.

The practical implementation of the crypto reserve remains uncertain, with details on operational aspects and timelines yet to be disclosed.