Trump Crypto First Strike: Strategic Altcoin Reserves Over Bitcoin?

- On Trump's First Day Back in Office, Preparing Executive Order to Make Cryptocurrency a National Priority - Establishment of a Crypto Committee and the Bitcoin vs. Altcoin Debate [Unblock Media] News has surfaced that U.S. President-elect Donald Trump is preparing an executive order to designate cryptocurrency as a national priority on his first day back in office on January 20. This executive order aligns with Trump's campaign promise to "make America the hub of the cryptocurrency industry," and aims to encourage regulatory authorities and the industry to collaborate in creating cryptocurrency regulations and policies. According to industry sources, the executive order Trump is pursuing includes establishing a 'Crypto Committee' which will collect and support industry opinions directly from regulators in order to foster the cryptocurrency industry. The intention is to build an official communication and coordination channel between cryptocurrency firms and the government to improve the current opaque regulatory environment and present clear guidelines. When the executive order is announced, it is expected to elicit two opposing reactions from the market simultaneously: "enhanced trust due to stronger regulations" and "increased short-term price volatility." First, it is necessary to specifically predict the impact of Trump's executive order on cryptocurrency on his first day back in office. If the executive order is implemented, investors might develop expectations of increased trustworthiness in cryptocurrency due to strengthened regulations and systems. However, with the government’s policy direction still uncertain, market uncertainty may increase in the short term, potentially causing significant price fluctuations for major coins like Bitcoin. Another issue that is garnering attention ahead of Trump’s return is the possibility that the U.S. government might pursue a 'strategic crypto reserve' centered on a specific altcoin instead of Bitcoin. According to external sources like the New York Post, candidates include cryptocurrencies closely related to U.S. companies, such as USD Coin, Solana, and XRP. Ripple's CEO Garlinghouse even shared a photo of himself with President Trump on Twitter. The need for such a strategic reserve policy is attributed to the technical flexibility and diverse applications of altcoins compared to Bitcoin. Especially, platform-based altcoins with smart contract functions have high practical application potential, and could serve as a new form of safe asset during the process of promoting dollar digitization in the future. Industry experts have expressed a wide range of opinions regarding the altcoin-centric reserve policy. While some view this approach as a forward-thinking strategy to reduce dependence on Bitcoin and promote the adoption of diverse altcoins, others have raised concerns about its potential implications for the broader cryptocurrency market, including Bitcoin's dominance and role in the ecosystem. For instance, Almeida, co-founder of Orchestra, expressed strong disappointment in a Bitcoin-excluded altcoin-centric reserve strategy. Additionally, BTC Inc CEO David Bailey dismissed it as "fake news," arguing that Ripple is overly entrenched with political entities. He also referred to Ripple as the "Kamala coin." The New York Times recently reported on this matter with the provocative headline, "First-Day Trump Executive Order: Federal Bitcoin Reserve?" This highlighted the changing view of U.S. politicians towards cryptocurrency and drew significant attention in the in-depth discussion on how financial institutions should strategize in response. The article emphasized how the Trump administration's cryptocurrency policy contrasts with the traditional conservative approach of previous political establishments. Notably, it mentioned the shift in perception seeing cryptocurrency as a national asset and the potential for economic innovation through this. While the altcoin-centric strategy is sparking controversy within the Bitcoin community, the analysis suggested it could be heavily driven by specific corporate and political interests. Bitcoin strategist Dylan LeClair from Metaplanet commented that it would have been unimaginable a year ago. In conclusion, if Trump’s executive order on cryptocurrency is unveiled on his first day back in office, it is expected to mark a new turning point for the global cryptocurrency market. The concurrent enhancement of trust via regulatory reinforcement and short-term volatility seems likely. Especially with the possible realization of a strategic altcoin reserve policy, the impact on the cryptocurrency market landscape is forecasted to be even more significant. The world is closely observing the official announcements and actions of the U.S. government.