Several cryptocurrency prices soared

Several cryptocurrency prices soared on the news that they would be adopted as 🇺🇸 Reserved assets of the U.S. Treasury Department.  

It consists of financial products (bonds, gold, foreign currency, etc.) with high liquidity and high safety that support economic stability and financial policy.

Key features of retained assets are:

1️⃣ Liquidity: It should be easily convertible into cash or other financial assets without loss of value. Has strong demand in high volume and active markets.

2️⃣Safety and Creditworthiness: Based on U.S. government credit, there is little risk of default.

3️⃣Stability: Eigenvalues must be relatively stable to reduce exposure to inflation and market volatility. Low volatility is essential.

4️⃣Convertibility and accessibility: easily traded in the global financial market and held as a key currency or as an internationally recognized currency.

5️⃣ International acceptance: Key reserve assets held by global central banks and financial institutions.

6️⃣ Regulatory Compliance: Managed in accordance with U.S. law and international financial standards. Supervised by U.S. Treasury, Fed and international financial institutions.

These assets play an important role in ensuring that the U.S. government maintains economic stability, provides liquidity to financial markets, and serves as a reserve currency for U.S. dollar 🇺🇸💵.

Although there has been an executive order, it is not absolute because legality can be challenged by the Constitutional Court or the National Assembly, so it is expected that the focus will be on the details of how it will be implemented.

Most of the cryptocurrency assets Trump mentioned seem to be in line with the above reserved assets characteristics, but I personally think there will be some friction/resistance in the policy implementation process, with questions raised about 3. stability and 6. compliance.

3. Strengthen financial transaction regulations to ensure stability and 6. AML/CTF (anti-money laundering and anti-terrorism financing regulations) for compliance with international regulations, it is not expected that the price volatility of crypto assets seen so far will be expected in the future.