Bernstein: It's unclear whether the concept of cryptocurrency reserves can be implemented solely through Trump's executive order

Bernstein's analysts are puzzled by US President Donald Trump's announcement to include XRP, SOL, ADA, ETH and BTC in the national cryptocurrency reserve. They wrote in a Monday report that if it involves the Federal Reserve, this move could be difficult to implement.

Analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia wrote in their report: "It is expected that Bitcoin will serve as 'digital gold' for the U.S. government." "Ethereum and Solana are currently the most commonly used blockchain networks; holding their native assets can help industry growth - but it is not clear why sovereign nations would include them in reserves," they pointed out. Bernstein analysts added that it remains unclear whether this idea of a cryptocurrency reserve can be implemented simply by executive order. Convincing other members of the U.S. government to hold altcoins like Solana and Ethereum could be very difficult.

Their report states: "We believe that a realistic path might be for the U.S. government to convince Congress that Bitcoin is new digital gold/global value storage means; re-evaluating/reallocating gold reserves would make sense." However, they think using Federal Reserve funds or Treasury Department funds to purchase other blockchain assets would be a hard sell.