Financial Times: Trump's cryptocurrency reserve plan resembles a "bait-and-switch," which may put pressure on altcoins to sell off

ChainCatcher news, according to the Financial Times of the UK, the cryptocurrency executive order ultimately signed by the Trump administration differs significantly from its previous social media messaging. According to the latest executive order, the U.S. will establish a "strategic Bitcoin reserve" and a "digital asset repository," but the source of funds is limited to tokens obtained through "criminal or civil asset forfeiture proceedings," rather than market purchases.

The report points out that Bitcoin "will be held as a reserve asset," meaning it will be permanently retained, while other tokens (including Ethereum and possibly XRP, SOL, and ADA) can be sold but not purchased. This is in stark contrast to the image previously suggested by Trump of a "Congress-approved, well-funded last buyer."

The Financial Times analysis believes that this plan will convert about 200,000 Bitcoins from temporary freezes to permanent freezes, while creating selling pressure on all other tokens like Ethereum. Compared to last year's discussions of a "crypto sovereign wealth fund capable of repaying national debt," this resembles more of a "bait-and-switch."