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Trump's crypto reserve plan is unlikely to pass Congress, JPMorgan says
If the Trump administration moves forward with a U.S. strategic crypto reserve that requires congressional approval, the chances of it being approved are low, according to JPMorgan.
"We don't believe an approval of a U.S. strategic crypto reserve is the most likely scenario (assuming congressional approval would be needed). So the chance is less than 50% in our mind," JPMorgan Managing Director of Global Market Strategy Nikolaos Panigirtzoglou told The Block .
For proponents of a crypto reserve, the digital asset stockpile would likely resemble the strategic petroleum reserve, acting as an inflation hedge and store of value. When the U.S. established the strategic petroleum reserve in 1975 , it depended on congressional approval of the Energy Policy and Conservation Act, which President Gerald Ford subsequently signed into law.
President Trump is expected to unveil a strategic crypto reserve on Friday, as confirmed by U.S. Commerce Secretary Howard Lutnick.
Although Bitcoin, the world’s most popular cryptocurrency, is expected to be a major component of the reserve, Trump also suggested that Ripple’s XRP, Solana’s SOL, and Cardano’s ADA will play a role. "Bitcoin is one thing, and then the other currencies, the other crypto tokens, I think, will be treated differently — positively, but differently," Lutnick told media .
“It's very possible that by asking for coins like XRP and ADA, [Trump] intends to compromise and not include those coins to make the ask more reasonable,” said Steven Lubka, Head of Swan Private at Swan Bitcoin. “He doesn't always immediately ask for what he intends to get — he asks for more than he intends to get.”
Even if approved, a strategic crypto reserve is unlikely to hold XRP and ADA, according to an analysis by JPMorgan. "If a U.S. strategic crypto reserve is eventually approved, it would be difficult to include smaller tokens outside Bitcoin and Ethereum," Panigirtzoglou told The Block . "As we argued in the report, the inclusion of such tokens would raise more concerns about risk and volatility."