Analysis: Creating a strategic crypto reserve will require solving several key issues and will take a long time

Odaily Planet Daily News 21Shares Strategy Director Eliézer Ndinga wrote an analysis that the overall rise in the crypto market was driven by the discussion of the US strategic crypto reserve, "which makes me feel a little too optimistic-I expect that once the market has a clear understanding of the timing and specific details, the market may fall back." The creation of a strategic reserve may require congressional approval, and its components-unlike simply confiscating asset reserves-need to be detailed to address the following issues: Asset allocation and allocation (for example, which cryptocurrencies are selected and their proportions); Holding period (for example, short-term vs. long-term commitment); Holdings relative to the total supply of each asset (for example, 1% of the 21 million bitcoins); Market integrity measures to prevent large fluctuations or front-running (for example, limiting daily trading limits); Asset protection, which may involve selected crypto custodians (for example, Coinbase or Anchorage), banks (for example, Bank of New York Mellon), or multiple providers to avoid single points of failure. This process will take longer than the market expects. Trump may be using his social media influence to propose the initial terms he has set for Congress, aiming to reach a compromise through negotiations. However, the draft could hit snags and require revisions, leading to delays that could slow the current hype.