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XRP and Cardano Communities Will Not Like This Strategic Reserve Nuance

Fri, 7/03/2025 - 14:42
XRP and Cardano are not safe from liquidation by US government, legal expert finds out
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XRP and Cardano Communities Will Not Like This Strategic Reserve Nuance
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The U.S. government has finally laid out its digital asset strategy, and while Bitcoin (BTC) gets a clear role as a long-term reserve asset, the treatment of other cryptocurrencies - especially XRP and Cardano - has left some investors unimpressed.

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Here’s the setup. The Strategic Bitcoin Reserve is exactly what it sounds like: a stash of Bitcoin, mostly from the Bitfinex hack of 2016, that the government is locking away. No selling, no liquidations. In fact, departments are even encouraged to figure out ways to add more Bitcoin to the pile, as long as taxpayers do not foot the bill.

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Then there is the U.S. Digital Asset Stockpile. This is where all the other confiscated digital assets end up - XRP, Cardano (ADA), Solana (SOL), Ethereum (ETH) and whatever else comes through forfeiture. Unlike BTC, though, these assets are not being treated as long-term reserves. 

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There is no rule stopping the government from selling them off, and the Treasury has been given explicit permission to do so whenever it sees fit, highlights pro-crypto legal expert James "MetaLawMan" Murphy.

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And that is where the frustration is coming from. If Bitcoin deserves to be locked away as a strategic asset, why not other cryptocurrencies? 

Some had hoped this announcement would signal a shift toward institutional recognition for altcoins, maybe even hint at long-term holdings. Instead, the message is pretty clear: Bitcoin is worth saving, and everything else is just another asset that can be cashed out if needed.

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For the XRP and ADA communities, this may feel like a step backward. The idea that their assets might get the same kind of government acknowledgment as Bitcoin is not panning out. Instead, it is Bitcoin in the vault and altcoins in the “sell when convenient” pile.

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