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White House Official Backtracks on Cryptocurrency Reserve Plan
Trump’s Announcement Sparks Confusion and Criticism
In a surprising move, a White House official has backpedaled on President Trump’s recent announcement to create a strategic cryptocurrency reserve comprised of Bitcoin, Ethereum, Cardano’s ADA, XRP, and Solana’s SOL. The announcement was met with both excitement and skepticism from the crypto community.
According to the official, President Trump’s statement was not as definitive as initially thought. "I think the president just gave five examples of cryptocurrencies in his post. Those five have to be the largest by market cap," the official said in a call with reporters ahead of Friday’s White House Crypto Summit. "I think people are reading into that a little bit too much. The bottom line is, I think that what we’ve announced here is consistent with what the president has always said about the space."
Market Reaction
The clarification sparked a sharp decline in the prices of the affected cryptocurrencies. Cardano’s ADA plummeted over 5% to $0.82, while XRP slid 3.5% to $2.41. Solana’s SOL was down 2% as well. The three tokens are now firmly down over the past 24 hours alongside a weak crypto market. Bitcoin, on the other hand, slumped to $87,000, giving up early morning gains.
Industry Reactions
The White House’s Crypto Summit, held on Friday, brought together senior executives from across the crypto industry, including Ripple, Gemini, Robinhood Crypto, Crypto.com, Chainlink, and Anchorage. The event aimed to foster collaboration and discussion on the future of cryptocurrencies.
The inclusion of altcoins in a strategic reserve was met with criticism from many in the industry, who expressed concerns about the potential for corruption and self-dealing. The use of altcoins, which are not as widely used as other cryptocurrencies, has raised questions about their legitimacy and value.
Market Data
According to data from CoinGecko, the official’s assertion that the five largest cryptocurrencies by market cap are Bitcoin, Ethereum, XRP, Binance’s BNB, and SOL is not entirely accurate. Taking out the two largest stablecoins – Tether’s USDT and Circle’s USDC – the five largest cryptocurrencies by market cap are actually Bitcoin, Ethereum, XRP, Binance’s BNB, and SOL, with Dogecoin and Cardano’s ADA following closely behind.
Conclusion
The White House’s clarification on the cryptocurrency reserve plan has left many in the crypto community feeling uncertain and confused. The market reacted sharply to the news, with prices declining across the board. As the crypto space continues to evolve, it is essential for policymakers to provide clear and consistent guidance to ensure the industry’s growth and stability.
FAQs
Q: What was President Trump’s original announcement?
A: President Trump announced that he would sign an executive order instructing the Presidential Working Group to create a strategic cryptocurrency reserve comprised of Bitcoin, Ethereum, Cardano’s ADA, XRP, and Solana’s SOL.
Q: What did the White House official clarify?
A: The official clarified that President Trump’s statement was not as definitive as initially thought, and that the five examples of cryptocurrencies mentioned were the largest by market cap.
Q: How did the market react to the clarification?
A: The market reacted sharply, with prices of the affected cryptocurrencies declining. Cardano’s ADA plummeted over 5%, XRP slid 3.5%, and Solana’s SOL was down 2%.
Q: What is the purpose of the White House’s Crypto Summit?
A: The summit aimed to foster collaboration and discussion on the future of cryptocurrencies, bringing together senior executives from across the crypto industry.
