On March 6, 2025, U.S. President Donald Trump signed a landmark executive order announcing the establishment of a strategic Bitcoin reserve and the inclusion of other cryptocurrencies in the national digital asset reserve. This policy marks a significant strategic shift for the U.S. in the cryptocurrency space, aiming to solidify its position as the "global hub of cryptocurrency."

Trump's executive order consists of two main components: the establishment of a Bitcoin strategic reserve and the inclusion of other cryptocurrencies.

1. Establishment of the Bitcoin Strategic Reserve

The federal government will use approximately 200,000 bitcoins, obtained through criminal or civil forfeiture procedures, as reserve capital. These bitcoins will be retained as a store of value, with the government committing not to sell any of the deposited bitcoins. Additionally, the Secretary of the Treasury and the Secretary of Commerce are authorized to develop budget-neutral strategies to acquire more bitcoins without burdening taxpayers. This measure aims to ensure the sustainability and stability of the reserve while avoiding additional fiscal pressure.

2. Inclusion of Other Cryptocurrencies

Beyond Bitcoin, Trump announced the inclusion of XRP, Solana's SOL token, and Cardano's ADA coin in the strategic reserve. This decision has sparked widespread controversy. While Bitcoin and Ethereum are clearly identified as core reserve assets, the inclusion of other tokens is seen by some as potentially politically motivated. For instance, XRP and SOL have strong lobbying forces behind them and currently face SEC litigation or regulatory uncertainty.

3. Establishment of the Digital Asset Reserve

The executive order also establishes a U.S. Digital Asset Reserve managed by the Treasury Department to hold other confiscated cryptocurrencies beyond Bitcoin. This move further expands the scope of the reserve but also increases the complexity of policy implementation. For example, assessing and managing the value and risk of these non-Bitcoin assets will be a significant challenge in the future.

4. Budget Neutrality and Audit Requirements

To ensure policy transparency and sustainability, the executive order mandates a comprehensive audit of the federal government's digital assets. This requirement aims to address public concerns about the transparency of government-held assets and provide data support for future policy adjustments.

5. The Policy's Dual Nature

While the policy has boosted market confidence in the short term, its long-term effects remain to be seen. On one hand, Bitcoin's status as "digital gold" may be further solidified. On the other hand, the inclusion of other cryptocurrencies may dilute the strategic significance of the reserve and even raise questions about the policy's motives.

Trump's executive order on the crypto strategic reserve immediately caused significant market volatility. This policy not only affected the price trends of Bitcoin and other cryptocurrencies but also led to notable changes in investor sentiment.

1. Price Fluctuations

After the announcement, Bitcoin prices surged from $85,000 to $95,000, a gain of over 11%. Ethereum also rebounded, rising from around $2,400 to $2,550. Meanwhile, XRP, SOL, and ADA, which were included in the reserve, saw even more significant gains, increasing by 15%, 20%, and 18%, respectively. This rally temporarily boosted the total market cap of the crypto market by 9% to $3.254 trillion.

However, the market's optimism did not last long. As investors delved into the policy details, Bitcoin prices began to fall, once again dropping below $85,000. This fluctuation reflected market doubts about the policy's actual effectiveness, especially disappointment that the government relied on confiscated assets rather than actively purchasing Bitcoin.

2. Investor Sentiment

Some investors questioned the long-term significance of the policy. Although the government committed not to sell Bitcoin, its reliance on confiscated assets rather than market purchases or mining was seen as weakening the reserve's strategic importance and potentially negatively impacting market liquidity. Additionally, the inclusion of other cryptocurrencies raised concerns about policy transparency and fairness.

3. Industry Reaction

The crypto industry's response to the policy was mixed. Supporters argued that this was the first time the U.S. government had explicitly acknowledged the strategic value of cryptocurrencies, potentially paving the way for their legalization and mainstream adoption. For example, Bitwise Chief Investment Officer Matt Hougan stated that this move could solidify Bitcoin's position as a globally important asset, similar to gold reserves.

However, critics pointed out that the inclusion of XRP, SOL, and ADA might be politically motivated, given the close ties between these tokens' backers and Trump. The regulatory uncertainties surrounding these tokens, such as SEC litigation, could also impact their legitimacy and stability within the reserve.

4. Summary of Short-Term Impact

Overall, Trump's crypto strategic reserve policy boosted market confidence in the short term but also revealed potential issues. The price volatility of Bitcoin and other cryptocurrencies reflected the market's complex expectations of the policy's effects. The fluctuation in investor sentiment indicated that while the policy direction was welcomed, its execution details and funding sources still needed further clarification.

Trump's crypto strategic reserve policy not only had a short-term impact on the market but could also have far-reaching effects on the future development of the crypto industry. From Bitcoin's global status to the improvement of regulatory frameworks, the multiple effects of this policy are worth exploring in depth.

1. Bitcoin's Global Status

The policy's core is to position Bitcoin as a strategic reserve asset, further solidifying its status as "digital gold." Similar to gold, Bitcoin's value storage function has been officially recognized, which may attract more institutional investors and countries to include it in their asset allocation. Bitwise Chief Investment Officer Matt Hougan noted that this move could make Bitcoin an integral part of the global financial system, akin to the role of gold in the traditional economy.

2. Legalization of Cryptocurrencies

Trump's policy marks the first time the U.S. government has explicitly acknowledged the strategic value of cryptocurrencies, potentially paving the way for their legalization. By including cryptocurrencies in the national reserve, the government sends a significant signal to the market: cryptocurrencies are no longer merely speculative instruments but an asset class with real value. This shift could prompt more countries to follow suit, further accelerating the global mainstream adoption of cryptocurrencies.

3. Improvement of Regulatory Frameworks

Although the policy provides an opportunity for the legalization of cryptocurrencies, the improvement of regulatory frameworks remains crucial for industry development. Currently, XRP and SOL face SEC litigation and regulatory uncertainty, which could impact their legitimacy and stability within the reserve. In the future, the government needs to establish clearer regulatory rules to ensure the compliance and security of reserve assets.

4. Industry Confidence and Investment

Trump plans to host the first White House Crypto Summit on March 7, 2025, to further discuss policy directions in the crypto space. This initiative could boost industry confidence and attract more capital and technology investment. However, uncertainties in policy execution and potential political interference could also negatively impact investor confidence.

5. Long-Term Challenges

Despite the optimistic policy outlook, its long-term effects face numerous challenges. First, the reliance on confiscated assets for funding may limit the reserve's scale and sustainability. Second, the inclusion of other cryptocurrencies could dilute the reserve's strategic significance and raise questions about the policy's motives. Finally, legal and regulatory obstacles in policy execution could hinder its actual implementation.

6. Summary and Outlook

Overall, Trump's crypto strategic reserve policy brings new opportunities and challenges to the industry. Bitcoin's global status may be further solidified, and the legalization process of cryptocurrencies could accelerate. However, uncertainties in policy execution and potential risks must be vigilantly monitored. In the future, the government needs to establish more transparent rules and sustainable strategies to ensure the policy's long-term success.

Despite the short-term boost in market confidence from Trump's crypto strategic reserve policy, the controversies and questions behind it cannot be ignored. From allegations to obstacles in policy execution, these issues could negatively impact the policy's long-term effectiveness.

1. Allegations

The inclusion of XRP, SOL, and ADA in the policy has sparked widespread controversy. Although Bitcoin and Ethereum are clearly identified as core reserve assets, Trump's prioritization of XRP, SOL, and ADA over more mainstream cryptocurrencies raises suspicions of political. For example, Ripple (the issuer of XRP) has donated to Trump-related political action committees, and Solana and Cardano also have strong lobbying forces behind them. These connections lead the market to question whether policy-making was influenced by specific interest groups.

2. Legitimacy and Stability of Cryptocurrencies

XRP and SOL currently face SEC litigation and regulatory uncertainty. For instance, the SEC has charged Ripple with unregistered securities offerings through XRP, and Solana's SOL token is also under investigation for similar issues. Including these cryptocurrencies in the national reserve could pose legal and compliance risks, potentially destabilizing the reserve. The market worries that if these tokens are ultimately classified as securities, their value could plummet, undermining the reserve's significance.

3. Limitations of Funding Sources

The policy's funding relies primarily on confiscated cryptocurrency assets rather than market purchases or mining. This passive approach may limit the reserve's scale and sustainability. Moreover, the legality of confiscated assets could be questioned, especially in civil cases. If the number of confiscated assets decreases in the future, the reserve's expansion will face bottlenecks.

4. Obstacles in Policy Execution

The actual implementation of the policy may face multiple obstacles. Firstly, congressional approval is a crucial step. Although Trump bypassed part of the legislative process through an executive order, long-term policy sustainability still requires congressional support. Secondly, funding and asset management issues could raise public doubts about policy transparency. Finally, incomplete legal and regulatory frameworks could hinder policy execution, especially regarding non-Bitcoin assets.

5. Market Skepticism About Policy Motives

Some investors believe that the policy was more about catering to specific interest groups rather than genuinely promoting the development of the crypto industry. This skepticism could undermine the policy's credibility and even affect market confidence in the long term. For example, if the market perceives the policy as politically motivated, investors may approach cryptocurrencies with caution, potentially stifling further industry development.

6. Summary and Reflection

Despite the short-term boost in market confidence from Trump's crypto strategic reserve policy, the controversies and questions behind it cannot be ignored. Allegations , the legitimacy and stability of cryptocurrencies, the limitations of funding sources, and obstacles in policy execution could all negatively impact the policy's long-term effectiveness. In the future, the government needs to establish more transparent rules and sustainable strategies to dispel market doubts and ensure the policy's long-term success.

Trump's crypto strategic reserve policy is undoubtedly a significant milestone in the development of the crypto industry, but its long-term effects remain to be seen. In the short term, the policy has boosted market confidence, driven up the prices of Bitcoin and other cryptocurrencies, and provided an opportunity for industry legalization. However, the controversies and questions behind the policy cannot be ignored. Allegations , the legitimacy of cryptocurrency selection, the limitations of funding sources, and obstacles in policy execution could all negatively impact the policy's long-term effectiveness.

1. Dual Impact of the Policy

The dual impact of the policy is reflected in the contradiction between its short-term market confidence boost and long-term execution risks. On one hand, Bitcoin's status as "digital gold" may be further solidified, and the legalization process of cryptocurrencies could accelerate. On the other hand, uncertainties in policy execution and potential risks must be vigilantly monitored, especially allegations and the legitimacy of cryptocurrency selection, which could undermine the policy's credibility.

2. Future Outlook

In the future, the crypto industry may see more policy support, but it must also be wary of the uncertainties brought about by political interference. The government needs to establish more transparent rules and sustainable strategies to ensure the policy's long-term success. For example, clarifying funding sources, reducing allegations , and promoting a more comprehensive regulatory framework are all key directions for future policy adjustments.

3. Suggestions and Reflections

To ensure the policy's long-term success, the government should take the following measures:

• Clarify Funding Sources: Acquire Bitcoin through market purchases or mining rather than relying on confiscated assets to enhance the reserve's sustainability and transparency.

• Reduce Allegations : Be more transparent and fair in cryptocurrency selection to avoid undermining the policy's credibility due to political interests.

• Promote Regulatory Framework Improvement: Develop clearer regulatory rules to ensure the compliance and security of reserve assets.

• Enhance Policy Transparency: Regularly publish audit reports of reserve assets to dispel public doubts about policy transparency.

4. Role of the Industry and Investors

The crypto industry and investors should also actively participate in the formulation and implementation of policies. By providing professional advice and feedback, they can help the government develop policies that better meet industry needs. At the same time, investors should remain rational, be vigilant about potential risks in policy execution, and avoid blindly following short-term market fluctuations.

5. Summary

Trump's crypto strategic reserve policy brings new opportunities and challenges to the industry. Although its short-term effects are significant, its long-term success depends on the transparency, fairness, and sustainability of policy implementation. Only through the joint efforts of the government, industry, and investors can this policy truly promote the development of the crypto industry and achieve its strategic goals.

Through the above analysis, we can see that Trump's crypto strategic reserve policy is not only a policy experiment but also an important step for the crypto industry to move towards mainstream adoption. However, its success will depend on the transparency, fairness, and sustainability of policy implementation. Only through the joint efforts of all parties can this policy truly promote the development of the crypto industry and realize its strategic goals.

On March 6, 2025, U.S. President Donald Trump signed a landmark executive order announcing the establishment of a strategic Bitcoin reserve and the inclusion of other cryptocurrencies in the national digital asset reserve. This policy marks a significant strategic shift for the U.S. in the cryptocurrency space, aiming to solidify its position as the "global hub of cryptocurrency."

Trump's executive order consists of two main components: the establishment of a Bitcoin strategic reserve and the inclusion of other cryptocurrencies.

1. Establishment of the Bitcoin Strategic Reserve

The federal government will use approximately 200,000 bitcoins, obtained through criminal or civil forfeiture procedures, as reserve capital. These bitcoins will be retained as a store of value, with the government committing not to sell any of the deposited bitcoins. Additionally, the Secretary of the Treasury and the Secretary of Commerce are authorized to develop budget-neutral strategies to acquire more bitcoins without burdening taxpayers. This measure aims to ensure the sustainability and stability of the reserve while avoiding additional fiscal pressure.

2. Inclusion of Other Cryptocurrencies

Beyond Bitcoin, Trump announced the inclusion of XRP, Solana's SOL token, and Cardano's ADA coin in the strategic reserve. This decision has sparked widespread controversy. While Bitcoin and Ethereum are clearly identified as core reserve assets, the inclusion of other tokens is seen by some as potentially politically motivated. For instance, XRP and SOL have strong lobbying forces behind them and currently face SEC litigation or regulatory uncertainty.

3. Establishment of the Digital Asset Reserve

The executive order also establishes a U.S. Digital Asset Reserve managed by the Treasury Department to hold other confiscated cryptocurrencies beyond Bitcoin. This move further expands the scope of the reserve but also increases the complexity of policy implementation. For example, assessing and managing the value and risk of these non-Bitcoin assets will be a significant challenge in the future.

4. Budget Neutrality and Audit Requirements

To ensure policy transparency and sustainability, the executive order mandates a comprehensive audit of the federal government's digital assets. This requirement aims to address public concerns about the transparency of government-held assets and provide data support for future policy adjustments.

5. The Policy's Dual Nature

While the policy has boosted market confidence in the short term, its long-term effects remain to be seen. On one hand, Bitcoin's status as "digital gold" may be further solidified. On the other hand, the inclusion of other cryptocurrencies may dilute the strategic significance of the reserve and even raise questions about the policy's motives.

Trump's executive order on the crypto strategic reserve immediately caused significant market volatility. This policy not only affected the price trends of Bitcoin and other cryptocurrencies but also led to notable changes in investor sentiment.

1. Price Fluctuations

After the announcement, Bitcoin prices surged from $85,000 to $95,000, a gain of over 11%. Ethereum also rebounded, rising from around $2,400 to $2,550. Meanwhile, XRP, SOL, and ADA, which were included in the reserve, saw even more significant gains, increasing by 15%, 20%, and 18%, respectively. This rally temporarily boosted the total market cap of the crypto market by 9% to $3.254 trillion.

However, the market's optimism did not last long. As investors delved into the policy details, Bitcoin prices began to fall, once again dropping below $85,000. This fluctuation reflected market doubts about the policy's actual effectiveness, especially disappointment that the government relied on confiscated assets rather than actively purchasing Bitcoin.

2. Investor Sentiment

Some investors questioned the long-term significance of the policy. Although the government committed not to sell Bitcoin, its reliance on confiscated assets rather than market purchases or mining was seen as weakening the reserve's strategic importance and potentially negatively impacting market liquidity. Additionally, the inclusion of other cryptocurrencies raised concerns about policy transparency and fairness.

3. Industry Reaction

The crypto industry's response to the policy was mixed. Supporters argued that this was the first time the U.S. government had explicitly acknowledged the strategic value of cryptocurrencies, potentially paving the way for their legalization and mainstream adoption. For example, Bitwise Chief Investment Officer Matt Hougan stated that this move could solidify Bitcoin's position as a globally important asset, similar to gold reserves.

However, critics pointed out that the inclusion of XRP, SOL, and ADA might be politically motivated, given the close ties between these tokens' backers and Trump. The regulatory uncertainties surrounding these tokens, such as SEC litigation, could also impact their legitimacy and stability within the reserve.

4. Summary of Short-Term Impact

Overall, Trump's crypto strategic reserve policy boosted market confidence in the short term but also revealed potential issues. The price volatility of Bitcoin and other cryptocurrencies reflected the market's complex expectations of the policy's effects. The fluctuation in investor sentiment indicated that while the policy direction was welcomed, its execution details and funding sources still needed further clarification.

Trump's crypto strategic reserve policy not only had a short-term impact on the market but could also have far-reaching effects on the future development of the crypto industry. From Bitcoin's global status to the improvement of regulatory frameworks, the multiple effects of this policy are worth exploring in depth.

1. Bitcoin's Global Status

The policy's core is to position Bitcoin as a strategic reserve asset, further solidifying its status as "digital gold." Similar to gold, Bitcoin's value storage function has been officially recognized, which may attract more institutional investors and countries to include it in their asset allocation. Bitwise Chief Investment Officer Matt Hougan noted that this move could make Bitcoin an integral part of the global financial system, akin to the role of gold in the traditional economy.

2. Legalization of Cryptocurrencies

Trump's policy marks the first time the U.S. government has explicitly acknowledged the strategic value of cryptocurrencies, potentially paving the way for their legalization. By including cryptocurrencies in the national reserve, the government sends a significant signal to the market: cryptocurrencies are no longer merely speculative instruments but an asset class with real value. This shift could prompt more countries to follow suit, further accelerating the global mainstream adoption of cryptocurrencies.

3. Improvement of Regulatory Frameworks

Although the policy provides an opportunity for the legalization of cryptocurrencies, the improvement of regulatory frameworks remains crucial for industry development. Currently, XRP and SOL face SEC litigation and regulatory uncertainty, which could impact their legitimacy and stability within the reserve. In the future, the government needs to establish clearer regulatory rules to ensure the compliance and security of reserve assets.

4. Industry Confidence and Investment

Trump plans to host the first White House Crypto Summit on March 7, 2025, to further discuss policy directions in the crypto space. This initiative could boost industry confidence and attract more capital and technology investment. However, uncertainties in policy execution and potential political interference could also negatively impact investor confidence.

5. Long-Term Challenges

Despite the optimistic policy outlook, its long-term effects face numerous challenges. First, the reliance on confiscated assets for funding may limit the reserve's scale and sustainability. Second, the inclusion of other cryptocurrencies could dilute the reserve's strategic significance and raise questions about the policy's motives. Finally, legal and regulatory obstacles in policy execution could hinder its actual implementation.

6. Summary and Outlook

Overall, Trump's crypto strategic reserve policy brings new opportunities and challenges to the industry. Bitcoin's global status may be further solidified, and the legalization process of cryptocurrencies could accelerate. However, uncertainties in policy execution and potential risks must be vigilantly monitored. In the future, the government needs to establish more transparent rules and sustainable strategies to ensure the policy's long-term success.

Despite the short-term boost in market confidence from Trump's crypto strategic reserve policy, the controversies and questions behind it cannot be ignored. From allegations to obstacles in policy execution, these issues could negatively impact the policy's long-term effectiveness.

1. Allegations

The inclusion of XRP, SOL, and ADA in the policy has sparked widespread controversy. Although Bitcoin and Ethereum are clearly identified as core reserve assets, Trump's prioritization of XRP, SOL, and ADA over more mainstream cryptocurrencies raises suspicions of political. For example, Ripple (the issuer of XRP) has donated to Trump-related political action committees, and Solana and Cardano also have strong lobbying forces behind them. These connections lead the market to question whether policy-making was influenced by specific interest groups.

2. Legitimacy and Stability of Cryptocurrencies

XRP and SOL currently face SEC litigation and regulatory uncertainty. For instance, the SEC has charged Ripple with unregistered securities offerings through XRP, and Solana's SOL token is also under investigation for similar issues. Including these cryptocurrencies in the national reserve could pose legal and compliance risks, potentially destabilizing the reserve. The market worries that if these tokens are ultimately classified as securities, their value could plummet, undermining the reserve's significance.

3. Limitations of Funding Sources

The policy's funding relies primarily on confiscated cryptocurrency assets rather than market purchases or mining. This passive approach may limit the reserve's scale and sustainability. Moreover, the legality of confiscated assets could be questioned, especially in civil cases. If the number of confiscated assets decreases in the future, the reserve's expansion will face bottlenecks.

4. Obstacles in Policy Execution

The actual implementation of the policy may face multiple obstacles. Firstly, congressional approval is a crucial step. Although Trump bypassed part of the legislative process through an executive order, long-term policy sustainability still requires congressional support. Secondly, funding and asset management issues could raise public doubts about policy transparency. Finally, incomplete legal and regulatory frameworks could hinder policy execution, especially regarding non-Bitcoin assets.

5. Market Skepticism About Policy Motives

Some investors believe that the policy was more about catering to specific interest groups rather than genuinely promoting the development of the crypto industry. This skepticism could undermine the policy's credibility and even affect market confidence in the long term. For example, if the market perceives the policy as politically motivated, investors may approach cryptocurrencies with caution, potentially stifling further industry development.

6. Summary and Reflection

Despite the short-term boost in market confidence from Trump's crypto strategic reserve policy, the controversies and questions behind it cannot be ignored. Allegations , the legitimacy and stability of cryptocurrencies, the limitations of funding sources, and obstacles in policy execution could all negatively impact the policy's long-term effectiveness. In the future, the government needs to establish more transparent rules and sustainable strategies to dispel market doubts and ensure the policy's long-term success.

Trump's crypto strategic reserve policy is undoubtedly a significant milestone in the development of the crypto industry, but its long-term effects remain to be seen. In the short term, the policy has boosted market confidence, driven up the prices of Bitcoin and other cryptocurrencies, and provided an opportunity for industry legalization. However, the controversies and questions behind the policy cannot be ignored. Allegations , the legitimacy of cryptocurrency selection, the limitations of funding sources, and obstacles in policy execution could all negatively impact the policy's long-term effectiveness.

1. Dual Impact of the Policy

The dual impact of the policy is reflected in the contradiction between its short-term market confidence boost and long-term execution risks. On one hand, Bitcoin's status as "digital gold" may be further solidified, and the legalization process of cryptocurrencies could accelerate. On the other hand, uncertainties in policy execution and potential risks must be vigilantly monitored, especially allegations and the legitimacy of cryptocurrency selection, which could undermine the policy's credibility.

2. Future Outlook

In the future, the crypto industry may see more policy support, but it must also be wary of the uncertainties brought about by political interference. The government needs to establish more transparent rules and sustainable strategies to ensure the policy's long-term success. For example, clarifying funding sources, reducing allegations , and promoting a more comprehensive regulatory framework are all key directions for future policy adjustments.

3. Suggestions and Reflections

To ensure the policy's long-term success, the government should take the following measures:

• Clarify Funding Sources: Acquire Bitcoin through market purchases or mining rather than relying on confiscated assets to enhance the reserve's sustainability and transparency.

• Reduce Allegations : Be more transparent and fair in cryptocurrency selection to avoid undermining the policy's credibility due to political interests.

• Promote Regulatory Framework Improvement: Develop clearer regulatory rules to ensure the compliance and security of reserve assets.

• Enhance Policy Transparency: Regularly publish audit reports of reserve assets to dispel public doubts about policy transparency.

4. Role of the Industry and Investors

The crypto industry and investors should also actively participate in the formulation and implementation of policies. By providing professional advice and feedback, they can help the government develop policies that better meet industry needs. At the same time, investors should remain rational, be vigilant about potential risks in policy execution, and avoid blindly following short-term market fluctuations.

5. Summary

Trump's crypto strategic reserve policy brings new opportunities and challenges to the industry. Although its short-term effects are significant, its long-term success depends on the transparency, fairness, and sustainability of policy implementation. Only through the joint efforts of the government, industry, and investors can this policy truly promote the development of the crypto industry and achieve its strategic goals.

Through the above analysis, we can see that Trump's crypto strategic reserve policy is not only a policy experiment but also an important step for the crypto industry to move towards mainstream adoption. However, its success will depend on the transparency, fairness, and sustainability of policy implementation. Only through the joint efforts of all parties can this policy truly promote the development of the crypto industry and realize its strategic goals.