Trump Plans America-First Crypto Reserves with XRP, Solana, USDC in Consideration

Recent reports suggest that Donald Trump is considering an “America-first” approach to the U.S. crypto reserves, potentially including assets like XRP, Solana, and USDC. 

Meanwhile, this move comes as Trump’s transition team prepares to take office on January 20, 2025. The team is reportedly drafting pro-crypto executive orders, which may also include the repeal of the controversial crypto accounting policy known as SAB 121.

Proposal for U.S. Strategic Cryptocurrency Reserves

According to a report by the New York Post, Trump’s transition team is exploring the idea of building a reserve of U.S.-founded cryptocurrencies, prioritizing coins like XRP, Solana, and the stablecoin USDC. 

A source familiar with the matter confirmed that this proposal has sparked debate within the crypto community. Some industry figures are concerned that this strategy could undermine Bitcoin, the world’s largest crypto, which is seen by many as a potential reserve asset.

One of the most debated aspects of this plan is the notion of including altcoins such as XRP and Solana, which are still closely associated with their creators. While Bitcoin is considered by many to be the most decentralized and established crypto asset, the inclusion of lesser-known coins could be seen as a departure from the goal of true decentralization.

Concerns About Non-Bitcoin Reserves

Despite the optimism surrounding a potential federal crypto portfolio, some within the industry have raised concerns. Quinn Thompson, founder of the hedge fund Lekker Capital, criticized the idea, stating, “This is a ridiculous idea and will never happen.” 

He argued that it is not the government’s role to make “venture capital bets” on altcoins, pointing out that the suggestion of a strategic reserve for non-Bitcoin coins may be more rumor than reality.

Anthony Georgiades, a general partner at Innovating Capital, echoed these concerns, highlighting that Bitcoin is the only cryptocurrency that is “sufficiently and purely decentralized.” While he acknowledged the value of promoting U.S.-based innovation, he warned that nationalizing digital assets could weaken the decentralized nature of blockchain projects.

Ripple’s CEO Optimistic About Pro-Crypto Policies

Despite some skepticism, Ripple CEO Brad Garlinghouse expressed optimism about the future of crypto in the U.S. He noted that the growing acceptance of cryptocurrencies, alongside potential crypto strategic reserves, could lead to a “step function change in adoption.” 

Speaking at the CfC St. Moritz conference, Garlinghouse suggested that the government’s embrace of digital assets is closer than many expect.

Ripple has been in discussions with Trump and his team for some time. Garlinghouse and Ripple’s CLO Stuart Alderoty have met with the former president at his Mar-a-Lago resort, with reports indicating that Trump has shown an open stance toward U.S.-based cryptocurrencies like XRP.

Bitcoin Reserve Still a Point of Debate

While some hope the U.S. will adopt a strategic reserve for Bitcoin, others have cautioned against focusing solely on altcoins. Proponents of Bitcoin as a reserve asset, such as Republican Senator Cynthia Lummis, have proposed using Bitcoin in a similar way to gold, to back the U.S. dollar. 

However, the idea of a Bitcoin-only reserve is still controversial, and the potential inclusion of altcoins remains a point of debate within the crypto community.

As Trump prepares to take office and begin his presidency, the crypto industry is eagerly watching for the first set of executive orders related to digital currencies. 

How the U.S. government chooses to manage crypto assets in the future could have long-term effects on both the market and the broader economy.