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Donald Trump’s team considering XRP, Solana, and USDC strategic reserves

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2 months ago

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Donald Trump's transition team considering XRP, Solana, and USDC strategic reserves
  • Trump’s team eyes XRP, Solana, and USDC reserves as part of the “America-first” policy.
  • The move aims to boost US crypto innovation.
  • However, the move has some wondering whether it will be at the expense of the promised Bitcoin reserve.

Donald Trump’s transition team is actively considering the establishment of strategic reserves for certain digital currencies besides Bitcoin. Sources reveal that the focus is on US-based cryptocurrencies such as XRP, Solana, and the stablecoin USDC, aiming to bolster America’s position in the global crypto market.

This initiative comes as part of Trump’s broader “America-first” policy, which, in the realm of digital finance, could mean a significant shift towards recognizing and supporting cryptocurrencies that originate within the US.

The idea of creating strategic reserves for these assets is seen by some as a way to foster innovation and maintain US dominance in emerging financial technologies.

XRP, Solana, and USDC are all by US-based firms

XRP is associated with Ripple Labs, a cross-border payment company based in San Francisco. Solana (SOL), on the other hand, is associated with Solana Labs which is also based in San Francisco, while USDC is associated with Circle which is headquartered in Boston, Massachusetts, United States.

The inclusion of XRP, which has been embroiled in legal battles with the SEC, could indicate a potential shift in regulatory attitudes under Trump’s administration.

Ripple’s CEO Brad Garlinghouse and other key figures have reportedly engaged with Trump, suggesting a possible thaw in the frosty relations between the crypto sector and regulatory bodies.

Solana, known for its high throughput and being a competitor to Ethereum, along with USDC, one of the most widely used stablecoins pegged to the US dollar, are also under consideration. This move could encourage further development and adoption of these platforms by providing them with a form of governmental endorsement or at least, recognition.

The anticipation around these developments is palpable, with the crypto industry on high alert for any executive orders or policy announcements that might come from the Trump administration upon his inauguration on January 20.

The sector is particularly hopeful for regulatory changes, including the possible repeal of SAB 121, which could open up more avenues for banks to engage with crypto assets.

As we move closer to the inauguration, all eyes will be on whether these strategic reserves will actually be approved and how they might shape the future of cryptocurrency in the US, potentially heralding a new chapter for digital finance under Trump’s leadership.

Does this mean Bitcoin could be sidelined?

However, this strategy has sparked debate within the crypto community. While some celebrate the potential for increased legitimacy and support for US-based digital currencies, others express concern that this focus might sideline Bitcoin, the original and most recognized cryptocurrency.

There’s a worry that such policies might skew market dynamics in favour of these selected altcoins, potentially impacting the decentralized ethos that many in the crypto space hold dear.

However, there are no signs that the transition team is sidelining Bitcoin. Besides, Donald Trump had initially proposed the creation of a Bitcoin reserve during the campaigns. Only time will tell how all this plays out, especially with less than four days remaining for Donald Trump to take the oath of office.

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Regulation

Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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34 minutes ago

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March 28, 2025

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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2 hours ago

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March 28, 2025

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

This Is A Developing News, Please Check Back For More

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Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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AVAX Price Eyes Rally To $44 As Grayscale Files For Avalanche ETF

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5 hours ago

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March 28, 2025

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According to a recent analysis, the AVAX price is eyeing a rebound to as high as $44. This comes just as asset manager Grayscale files to offer an Avalanche ETF, which will list and trade on the Nasdaq exchange.

Grayscale Files With US SEC To Offer Avalanche ETF

Grayscale has officially filed with the US SEC to offer an Avalanche. This came following Nasdaq’s 19b-4 filing with the Commission to list and trade this proposed ETF on the exchange. The SEC will have to determine whether or not to approve the fund.

Grayscale becomes the second asset manager to file to offer an AVAX ETF. VanECK was the first as the asset manager filed the S-1 for its ETF with the SEC two weeks ago. It is worth mentioning that Grayscale already has an Avalanche Trust, which it is simply looking to convert to an ETF.

Asset managers continue to file for several altcoin ETFs under the new SEC administration, with acting Chair Mark Uyeda looking to create a regulatory-friendly environment for the crypto industry. US SEC Chair nominee Paul Atkins has also affirmed that he plans to prioritize regulatory clarity for the industry.

Market expert Nate Geraci also highlighted the wave of altcoin ETFs that have stormed the SEC’s desk including filings for XRP, Solana, Dogecoin, Cardano, SUI, Hedera, Polkadot, Litecoin, Aptos, and Axelar.

AVAX Price Eyes Rebound To $44

The AVAX price is eyeing a rebound to $44 as predicted by crypto analyst Jarfan. Grayscale’s filing for an Avalanche ETF undoubtedly provides a bullish outlook for the altcoin and could spark this rally.

Jarfan stated that AVAX’s chart is one of the cleanest on the market at the moment. He remarked that the altcoin has taken out previous lows and looks to be putting a double bottom on the higher timeframe.

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In line with this, he affirmed that overall, a very bullish structure is forming at the moment and that AVAX is showing a lot of relative strength in comparison to other altcoins. The analyst noted that there have been major moves from other coins recently, although they have been mainly meme coins, and that the fact that Avalanche is keeping up with them is truly impressive.

Jarfan also stated that the AVAX price is holding above a very strong support right now with barely any drawbacks. As such, he belives that the altcoin will rally to $30 in no time once Bitcoin breaks out from $88,000.

His accompanying chart also showed that the altcoin could rebound to $44, although it would face a major resistance at that level as it attempts to further rally to the upside. The crypto analyst predicts that Avalanche will break in the top 10 cryptocurrencies by market cap very soon.

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Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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