President Donald Trump’s plan to create a U.S. strategic crypto reserve has sent shockwaves through the digital asset market. His announcement included Bitcoin, Ethereum, XRP, Solana, and Cardano. The crypto market jumped, with Bitcoin briefly crossing $95,000. However, this rally might be short-lived. The plan needs Congress’s approval, and the process won’t be easy. Regulatory hurdles could delay or even block the creation of the reserve.
Analysts are divided. Some see it as a bullish move that legitimizes crypto. Others warn that without clear regulations, market volatility could increase. Congress will have the final say, and the upcoming debates will shape the future of digital assets in the U.S.
Crypto Caucus Gains Momentum in Congress
The Congressional Crypto Caucus is stepping up to push digital asset policies. Formed by Representatives Ritchie Torres and Tom Emmer, this bipartisan group aims to support crypto-friendly legislation. Unlike the older Congressional Blockchain Caucus, this new caucus will work as a voting bloc. Their focus includes stablecoin laws, market structure bills, and regulatory clarity.
Lawmakers argue that the U.S. must remain a leader in blockchain innovation. Voter demand for crypto regulation has grown, and Congress is responding. The caucus could play a key role in securing the necessary approvals for Trump’s crypto reserve plan. Their ability to influence votes will be tested in the coming months.
Market Reacts: Bitcoin and Ethereum Volatility
The market jumped after Trump’s announcement, but Bitcoin and Ethereum remain volatile. Bitcoin hit $95,000 before pulling back to below $90,000. Investors quickly realized that establishing a crypto reserve won’t happen overnight. It requires legislative approval, funding, and a clear framework.
Analysts at Nansen warn of short-term turbulence. Some tokens, like ADA and SOL, saw huge gains but corrected sharply. The rally was fueled by excitement rather than concrete policy changes. If Congress delays or rejects the plan, the market could face another sharp correction. Still, some believe long-term adoption is inevitable, with or without immediate government action.
Regulatory Roadblocks and the Crypto Reserve
A major challenge for Trump’s crypto reserve is regulatory approval. Congress must decide if holding digital assets benefits the U.S. economy. Critics argue that crypto’s volatility makes it unsuitable for government reserves. Others see it as a way to hedge against inflation and strengthen the U.S. financial system.
Stablecoin legislation is also in focus. Lawmakers are debating a bill that would set clear rules for dollar-backed stablecoins. If passed, it could provide a framework for how the government interacts with digital assets. The Senate Banking Committee is pushing to finalize these laws by April, but political resistance remains.
What’s Next for the U.S. Crypto Reserve?
The coming weeks will be crucial for digital assets. Trump’s first White House Crypto Summit on March 7 will provide more details on his plan. Meanwhile, the Congressional Crypto Caucus will push for clearer regulations. Bitcoin and Ethereum prices will likely react to any new developments.
If Congress approves the crypto reserve, it could be a game-changer. It would signal that digital assets are becoming a permanent part of the U.S. financial system. However, if lawmakers push back, the market could face new uncertainties. Either way, crypto’s role in politics and finance is bigger than ever.