Bitcoin/Crypto Reserve and there are two possible outcomes:

1⃣ The reserve is $BTC and none of the mentioned altcoins actually make it in

2⃣ We're going to accelerate into degeneracy unlike anything seen before

Long article time. 🧵👇

First, we should address the big question. Why is Samson saying that none of the alts Trump listed will make it in? Didn't the President just say XRP, SOL, ADA, and ETH will be included?

Well, can Trump actually just dictate what things going into a reserve? I don't think so. There will need to be a report/proposal from the working group and then Congress will need to pass legislation.

So then why did Trump say he would "direct the working group to move forward on a Crypto Strategic Reserve" that specifically includes those alts?

Well, why do politicians say anything? (no offense to the politicians we talk to regularly 😋)

I'm pretty sure Trump knows he can't actually ensure those things are included, but if you read the words carefully, he can of course direct the work group to do something - it doesn't mean it will happen.

There are theories out there that some traders the benefited from the post, having opened long positions in advance, and those trades could be connected to Trump. But a simpler possibility is that it's just to appease the lobbyists that are pushing for their coins to be included in the reserve. Maybe secure some donations? There definitely was some leak that allowed some traders to frontrun the news - but that could be a leak from whoever manages his social account, or the platform itself.

The post could also be intended to gift some exit liquidity to Ripple or Cardano lobbyists or donors. It makes sense to pump those coins now because once a real report comes out with a list of coins or criteria, it's too late. This would go in-line with the reasons for why Trump pushed the Trump memecoin before inauguration, he couldn't do it post inauguration.

Who knows? The possibilities are endless.

The one thing we know for sure is you don't post something to pump very specific coins on a low liquidity Sunday for no reason.

One reason why the US is a major financial center is because there is rule of law and guidelines for how things are done - things generally make sense.

That's why people from around the world feel safe investing into #Bitcoin ETFs and securities in the US.

If Trump can somehow just unilaterally pick random shitcoins to put into a national reserve, well, that is just very bad for the US. Things stop making sense. It's now a free-for-all.

That sets us down Path #2: accelerating into degeneracy. The impact is far greater than just "crypto" but could potentially undermine the US financial system - even moreso than the fiscal mismanagement of the past few decades.

Alright, so now let's look at Path #1: Why will the Crypto Reserve not have XRP, SOL, ADA, and ETH?

It goes back to this:

The US is a major financial center because there is rule of law and guidelines for how things are done.

That applies to Strategic Bitcoin Reserves or Strategic Crypto Reserves.

"One does not simply buy a bunch of shitcoins for a country."

The Presidential Working Group tasked to get the Crypto Reserve (let's just call it that from now on since Trump is calling it that) going will need to define many things, including criteria for what can be included.

There must be guidelines for selection - because we are not yet on Path #2 and things should kind of make sense.

I would expect some list of requirements for what can be included in a reserve, much like we have the Howey Test to define what qualifies as a security.

As the Presidential Working Group writes up the report and defines criteria for what cryptocurrencies can be included, I believe they will coalesce on something like this.

Requirements for Strategic Crypto Reserve Assets:

➡️ Reserve assets must be based on Proof of Work to ensure fundamental integrity and assurance of immutability. Proof of Stake assets cannot be included because foreign actors can gain control simply by owning the asset.
➡️ Reserve assets must be dominant in their hashing function to ensure resistance to attacks.
➡️ Reserve assets must not be merged mined or dependent upon the security of another asset.
➡️ Reserve assets cannot have a premine or allocation to insiders.
➡️ Reserve assets must have been existing and operational for at least 10 years.
➡️ Reserve assets must not be securities and if there exists reasonable doubts, further investigations must be undertaken.
➡️ Reserve assets must be able to be secured in cold storage utilizing multisig systems that do not involve blind signing.
➡️ The blockchain of the reserve asset must be fully intact and verifiable from the genesis block.

There are probably more requirements, depending on how seriously the US wants to be taken.

So given this list of requirements, what can be added?

Definitely not XRP, SOL, ADA, and ETH.

In addition to Bitcoin, Trump's Strategic Crypto Reserve could potentially include:

Litecoin
Monero

If they don't care about merged mining and hashing function dominance, then add Dogecoin and Namecoin. Given Elon's prominence in the Trump admin, I'm sure he will find a way to rationalize the inclusion of Dogecoin.

Aside from what assets can qualify for the Strategic Crypto Reserve, there are many other questions such as:

➡️ Which government department will oversee the reserve?
➡️ How will the reserves be secured? Self custody? Custodian?
➡️ What will be the procurement process for the assets?

So you can see there is a lot to be done by the working group.

Having some seriousness to the selection process is very important to avoid going down Path #2. It's even more important because Trump's Crypto Czar is David Sacks who is heavily conflicted because he is a big Solana bagholder.

Even if David divested, perception matters because it cannot appear that assets are being cherry picked to benefit certain people or companies.

TL;DR:

- Trump can't just pick what goes into a Strategic Crypto Reserve.
- There will be some report/proposal with criteria for what goes into a reserve, then Congress will need to approve.
- It's highly unlikely that they can formulate serious criteria that allows shitcoins like XRP to pass and not [insert random memecoin].
- The Crypto Reserve will likely be Bitcoin and few other PoW coins.
- It's likely that the Crypto Reserve will come into existence because Trump seems set on fulfilling his "Crypto Capital" promise.
- If the Crypto Reserve gets stacked with random shitcoins, prepare to accelerate into degeneracy like never before.

Plan accordingly.

#GPSonBinance #USTariffs #FTXrepayment #MarketPullback #BinanceAlphaAlert