Reaction to Trump’s crypto reserve: ‘Short-term optimism, long-term caution’
A US crypto reserve could offer “cover” to institutional investors, like pension funds, which have been hesitant to invest in crypto.
A pair of posts by President Donald Trump about his plans for a US crypto reserve “triggered a marketwide rebound” in cryptocurrencies on March 2, with global market capitalization increasing nearly 7% to $3.04 trillion, Cointelegraph reported.
Still, on closer examination, a crypto strategic reserve — presumably along the lines of the US Strategic Petroleum Reserve, created in the 1970s after the Arab oil embargo — raises as many questions as it answers.
There was controversy, if not confusion, about what sorts of crypto would comprise the “reserve,” as well as whether the US would purchase crypto for the reserve, as opposed to simply adding to its stock of confiscated crypto when law enforcement makes seizures.
