How Will Trump's XRP, Cardano and Solana Decision Affect Bitcoin and the US？ Famous CEO Lists 8 Pending Risks!

While US President Donald Trump has become one of the most influential factors in the cryptocurrency market, his crypto reserve announcement on Sunday, which includes XRP, Cardano and Solana, has become one of the most talked about topics.

While Trump's addition of Bitcoin (BTC) and Ethereum (ETH) to the reserve, XRP, ADA and SOL, drew the reaction of industry leaders, Castle Island Ventures partner Nic Carter stated that Trump's crypto reserve plan contains eight risks and listed these risks.

Nic Carter argued that Trump‘s proposed cryptocurrency reserve could harm both Bitcoin and the U.S. government, arguing that the five-cryptocurrency reserve proposal undermines Bitcoin’s value proposition and serves personal interests.

1. Reserve plan rollback risk: Without congressional approval, a future administration could easily reverse policy and disrupt the market.

2. Dollar market instability: Tying cryptocurrencies to US reserves could shake confidence in the dollar and Treasury markets.

3. Limited need for Bitcoin exposure: The US already benefits from more BTC than any other country through investor tax benefits. American funds and individuals also hold more Bitcoin than citizens of other countries.

4. No strategic use case: Unlike oil or rare minerals, crypto reserves do not serve a core function for national security or economic stability.

5. Potential devaluation of BTC: Mixing Bitcoin with rival crypto assets Ethereum, Cardano, Solana, and XRP and giving them all equal government approval would devalue Bitcoin and make it appear undifferentiated from those assets. It would undermine BTCs unique decentralization.

6. Bitcoin doesnt need a government: BTC has become a multi-trillion dollar asset without government intervention; government support can politicize it.

7. Public backlash: With only 5-20% of Americans owning $BTC, investing taxpayer money in crypto reserves could lead to unnecessary public backlash.

8. Conflicts of interest may increase: Trump and his allies hold a variety of crypto assets. Concerns are growing that the Reserve is using government resources to increase the value of coins held by Trump and many in his inner circle.

Nic Carter recently warned that Trump‘s diversified US crypto reserve plan could backfire, undermining BTC’s independence and leading to political instability.

*This is not investment advice.