JPMorgan has poured cold water on expectations for a U.S. strategic crypto reserve, warning that the chances of congressional approval are less than 50%, and that including smaller tokens such as XRP, Solana (SOL), and Cardano (ADA) would pose significant challenges. In a report released Wednesday, the banking giant cited risk and volatility concerns as key obstacles beyond bitcoin and ethereum.
JPMorgan’s Skepticism on Congressional Approval
Nikolaos Panigirtzoglou, managing director of global market strategy at JPMorgan, told The Block: “We don’t believe an approval of a U.S. strategic crypto reserve is the most likely scenario (assuming congressional approval would be needed). So the chance is less than 50% in our mind.” He added that even if a reserve were eventually approved, including tokens beyond bitcoin and ethereum would raise more concerns about risk and volatility.
Trump’s Reserve Proposal and Market Reaction
President Donald Trump announced on March 2 a proposal for a U.S. strategic crypto reserve that would include BTC, ETH, XRP, SOL, and ADA. The announcement initially sparked a rally in the crypto market. White House AI and Crypto Czar David Sacks confirmed that the initiative aligns with Trump’s executive order and his goal of making the U.S. the global leader in cryptocurrency. He also stated that further discussions would take place at the first-ever White House crypto summit on March 7.
However, skepticism quickly dampened the enthusiasm. JPMorgan’s report highlighted that similar bitcoin reserve proposals in several U.S. states have failed in the past, with lawmakers raising concerns about risk and volatility. Central banks globally also remain hesitant toward holding crypto reserves.
Specific Hurdles for XRP, SOL, and ADA
JPMorgan argued that smaller cryptocurrencies face significant regulatory and market challenges. XRP remains entangled in legal issues with the SEC, though it has won some partial victories. SOL and ADA have been labeled by some regulators as unregistered securities. These factors make them unlikely candidates for a national strategic reserve. Liquidity and price volatility are also major concerns.
Despite the pessimistic outlook, the crypto community awaits the White House summit for more clarity. For now, JPMorgan’s analysis suggests that even if a reserve is created, it may be limited to bitcoin and possibly ethereum, leaving altcoins on the sidelines.