US President Donald Trump’s announcement that Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP and Cardano (ADA) will be included in the US strategic cryptocurrency reserve has sparked debate in the global crypto community.
Alex Xu Claims Trump's Decision Was Influenced by Pre-Election Sponsorships
Chinese analyst Alex Xu, a research partner at Mint Ventures, weighed in on the potential implications of this decision, questioning the seriousness of such a reserve and its chances of gaining federal approval.
Xu noted in his statement that SOL, XRP, and ADA have been heavily involved in supporting Trump’s political activities, including sponsorships and donations to his inaugural fund. According to Xu, this support likely influenced Trump’s decision to include these cryptocurrencies in the strategic reserve.
Continuing his assessment, the analyst discussed the following issues regarding the selection of these altcoins:
- Political and Financial Ties – Xu noted that Solana, XRP, and Cardano have maintained close ties to Trump since the campaign and provided visible financial support. He suggested that this latest move serves as a form of quid pro quo by allowing Trump to honor them with executive power.
- Impact on Bitcoin’s Legitimacy – Xu warned that treating assets like SOL, XRP, and ADA as part of a strategic reserve could undermine the credibility of Bitcoin’s inclusion. He argued that this decision could undermine the chances of a federal Bitcoin reserve bill passing.
- Legislative Challenges – Advancing these additions through a presidential task force would not guarantee legislative success, according to Xu. He noted that the Republican Party only has a slim majority in the House of Representatives, making such a bill unlikely to pass.
- Sovereign Wealth Fund Potential – Xu speculated that Trump could bypass federal legislative hurdles by creating a sovereign wealth fund managed by the Treasury. This approach would allow the government to purchase SOL, XRP, and ADA without direct congressional approval. However, he questioned whether these projects would be willing to provide Trump with enough financial incentive to justify such a move.
*This is not investment advice.
