Donald Trump delayed the cryptocurrency market last weekend, announcing a U.S. Crypto Reserve and outlining its key assets. Initially named were XRP, Solana, and Cardano, with Bitcoin and Ethereum following in a Truth Social update.

Did you extend gratitude to Donald Trump and JD Vance, 99Bitcoins community? Have you ever expressed ’thank you’ even once for elevating your holdings briefly before a major downturn?

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The announcement caused prices for the selected cryptocurrencies to surge, igniting renewed scrutiny about potential conflicts of interest within his administration, particularly involving David Sacks.

US Crypto Reserve: A Market-Driving Announcement Amid David Sacks Controversy

Trump’s announcement drove the cryptocurrency market on Sunday morning, naming XRP, SOL, and ADA as key assets in the U.S. Crypto Reserve. Prices exploded—XRP climbed 28%, SOL increased 23%, and ADA jumped 58%. This bullish momentum intensified when Bitcoin and Ethereum were included, aiming to affirm U.S. leadership in digital assets.

“A U.S. Crypto Reserve will elevate this critical industry after years of dishonest attacks by the Biden administration,” Trump expressed on Truth Social. “I will ensure the U.S. becomes the Crypto Capital of the World.”

XRP Chart

This announcement aligns with the administration’s consistent pro-crypto stance, which includes reversing policies from the Biden era.

Trump’s selection of altcoins is not without controversy. Critics are raising questions regarding the potential conflicts involving Crypto Czar David Sacks, who has extensive connections to the crypto sector. Sacks, who is set to lead this week’s White House Crypto Summit, is an early investor in SOL through Multicoin Capital, and also involved with Bitwise Asset Management, which significantly supports the five chosen tokens.

“I sold all my cryptocurrency (including BTC, ETH, and SOL) before the administration began,” Sacks clarified on X, addressing the allegations. “I had a $74,000 stake in the Bitwise ETF, which I divested on January 22.”

Critics assert that despite divesting, Sacks’ close ties to the mentioned assets could sway policy-making. Likewise, Trump is facing scrutiny.

SEC-Designated “Securities” Now Blessed

Trump’s focus on assets like XRP, SOL, and ADA—previously labeled as unregistered securities by the SEC—raises concerns but hasn’t deterred investors eager to navigate the post-Gary Gensler landscape. The market seems more interested in the administration’s hint towards softer regulations.

The potential for an unlimited bull run is questioned. The market should have corrected during COVID-19, but governmental and Fed interventions effectively supported the economy artificially.

The repercussions of these decisions are now evident with increasing interest rates and inflation. Currently, we might be at a turning point where Trump may permit the market to undergo necessary corrections over the coming years.