Trump’s Crypto Strategic Reserve and Cardano

On March 2, President Donald Trump promised to include Cardano (ADA) in his administration’s Crypto Strategic Reserve. As one of the five assets that mirrored a David Sacks-backed fund, ADA rallied 58% within 90 minutes of that news.

Trump’s surprising blessing of ADA alongside XRP and SOL showed that he was pro-altcoin and disregarded the SEC’s designations of these assets as unregistered securities. This was devastating for bitcoin (BTC) maximalists, as Trump didn’t seem particularly concerned with distinguishing BTC from other digital assets.

It also demonstrated that politics can be beneficial. Ethereum Foundation ex-CEO and Cardano founder, Charles Hoskinson, has been active in public affairs over the past year, having created a Political Action Committee, endorsed a presidential candidate, donated to a Senate campaign, and attended various political events alongside Trump’s allies.

However, Hoskinson received disappointing news on March 6 — just four days after Trump promised to include ADA in a US Crypto Strategic Reserve. Trump and Sacks decided to split their promise into two funds: a BTC-only reserve and an altcoin-only stockpile.

Cardano Relegated to Non-Purchasing Stockpile

Tragically for the Cardano community, ADA would be placed in the stockpile, where it would not benefit from any purchases. Its fund would only allow for holding and selling — no buying. Only the BTC reserve would have Trump’s approval for government purchases.

Despite rumors that Trump’s team had invited Hoskinson to the White House Crypto Summit on March 7, he did not attend.

Since that setback, ADA has retraced all its gains. After surging to $1.14 following Trump’s March 2 commitment, it has fallen back to $0.73 as of the publication time. ETH, XRP, and SOL have also lost their March 2 gains as Trump modified his promises regarding these assets.

Even if ADA is included in the US Digital Asset Stockpile, its representation will be minimal. According to Arkham, the US government probably holds less than $1 million worth of ADA.

Down $15 Billion Since Trump Reneged

In summary, ADA’s brief surge following Trump’s initial promise quickly reversed when he placed altcoins into a non-purchasing stockpile. Once the fifth-largest crypto asset by market cap at the time of Trump’s initial commitment, ADA has since dropped to eighth place and lost $15 billion in market cap since March 2.

In the weeks since, Hoskinson has focused on commenting on crypto markets, criticizing Solana and memecoins, posting memes, and working on matters related to IOHK, Cardano, andhis other interests.