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Highlights
- Analysts highlight key hurdles, including the need for congressional approval for BTC US strategic reserves.
- BitMEX CEO Arthur Hayes dismissed the initiative as "just words".
- Hayes said that without congressional approval for funding or gold revaluation, there would be no resources to acquire BTC.
Donald Trump has once again stormed the bearish crypto market with the announcement of US crypto reserves for Bitcoin (BTC) and top altcoins like Ethereum (ETH), XRP, Solana (SOL), and ADA. However, market analysts believe that implementation of the same could be easier said than done. Analysts believe that even if Trump has signed executive orders for US strategic reserves, it won’t become a reality overnight.
Key Roadblocks to Bitcoin and Altcoin US Strategic Reserves
Crypto analyst Ali Martinez has cast doubt on the immediate feasibility of a U.S. Strategic Crypto Reserve, even if President Donald Trump signs an executive order to initiate it. Martinez outlined several critical steps required before the US strategic reserve could become a reality. Here are the key hurdles:
- Congress must draft, debate, and pass legislation to establish the reserve.
- The legislation must define which cryptocurrencies will be included and their respective weightings.
- Funding sources must be identified and allocated.
- Regulatory agencies such as the SEC, CFTC, and Treasury must create and enforce compliance rules.
Furthermore, if Congress rejects the initiative, it could become another bottleneck. “Would the entire market pump be undone?” he questioned.
BitMEX CEO Arthur Hayes has expressed skepticism regarding the recent buzz around the U.S. Strategic Crypto Reserve initiative, dismissing it as “just words” without concrete action. “Let me know when they get congressional approval to borrow money or revalue the gold price higher,” Hayes stated.
Besides, he also said that without such measures, there would be no funds available for the government to purchase BTC or other cryptocurrencies. On the other hand, the announcement of US crypto reserves has stirred a debate between the XRP and Bitcoin supporters.
All Eyes on Upcoming Crypto Summit
Crypto czar David Sacks shared the announcement from President Trump regarding the US strategic reserves, adding that they would be working on keeping up with his promise of making America the “Crypto Capital of the World”.
Later this week, Donald Trump is scheduled to attend the first-ever White House Crypto Summit while prioritizing “the healthy growth and use of digital assets in all sectors of the economy”.The industry is closely waiting for any major announcements that could come during the upcoming summit ahead.
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