After Trump's Virtual Asset Executive Order

Changes in US Regulatory Stance and

After US President Donald Trump announced plans for a strategic virtual asset reserve, focusing on Bitcoin (BTC) and allocating a portion to altcoins like Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA), these major altcoins displayed substantial declines and struggled to recover.

As of the 20th, according to CoinMarketCap, Ethereum is trading at $2027.87, showing a decrease of 25.71% over the past month, while Ripple is trading at $2.49, with a decline of 6.27%. Solana also plunged by 24.89% to $133.52, and Cardano decreased by 9.1% to $0.7290.

This downturn in altcoins is being analyzed as a result of their exclusion from Trump’s strategic reserve assets, despite investor anticipation.

Previously, on his social media platform, Truth Social, Trump announced that he would be promoting a virtual asset strategic reserve, focusing on Bitcoin and Ethereum, and also including Solana, Ripple, and Cardano. This announcement led to a surge in the prices of major altcoins.

However, on the 7th (local time), the only asset included in the reserve under Trump’s executive order was Bitcoin. Investors had anticipated announcements related to altcoins at the ‘Crypto Summit’ held at the White House, but instead, announcements that dashed these hopes followed.

David Sacks, the White House’s virtual asset policy chief, stated, “President Trump’s mention of Ripple, Solana, and Cardano was unrelated to government preference and merely mentioned the top 5 cryptocurrencies by market cap,” urging people not to read too much into it.

Now, with the U.S. administration focusing on Bitcoin for its strategic reserve, are there any remaining growth factors for the altcoin market?

Possibility of Regulatory Changes with Stablecoin Bill Passage and Chokepoint 2.0 Withdrawal

Experts first identify the passage of the U.S. ‘Stablecoin Bill (GENIUS Act)’ as a key factor for altcoins.

Previously, on the 13th, the Stablecoin Bill passed the Senate Banking Committee vote with 18 in favor and 6 against, and it is now awaiting a full Senate vote. On the 18th, Bo Hines, chairman of the White House Virtual Asset Presidential Advisory Committee, mentioned that the Stablecoin Bill may be delivered to President Trump for signing within two months. It is expected that the bill could be approved within two months.

Juwon Lee, a researcher at Xangle Research, said, “Stablecoins form the core foundation of DeFi (Decentralized Finance) and on-chain finance, so if a clear regulatory framework is established, liquidity in the virtual asset market is likely to increase, and the usability of altcoins is likely to expand.”

He added, “If the bill passes, overall trust and capital inflow into the altcoin market are expected to improve, and projects that were previously constrained by regulatory uncertainty are likely to become active again.”

Ki-Young Ju, CEO of CryptoQuant, also noted the capital inflow into the altcoin market following the growth of stablecoins.

He said, “Until 2021, the term altseason referred to the rotation of assets from Bitcoin to other altcoins. However, now, with onboarding from traditional finance layers like spot ETFs or MicroStrategy, there is almost no asset rotation to altcoins.”

He explained, “If the stablecoin market grows, stablecoin trading on virtual asset exchanges will become active, and asset rotation to altcoins will also increase. This is a long-term boon for the altcoin market.”

Similar to the passage of the Stablecoin Bill, the withdrawal of Chokepoint 2.0 is also analyzed to have a positive impact on altcoins.

Chokepoint 2.0 is a regulation that blocks access to banking services for virtual asset companies, and Trump is reportedly reviewing an executive order to withdraw it.

Byung-Jun Kim, a researcher at Dispread, predicted, “If Chokepoint 2.0 is lifted, virtual asset companies can establish stable banking partnerships, and as investors find it easier to use on-off ramps, liquidity flowing into the virtual asset market, including altcoins, may increase.”

Likely Approval of Solana and Ripple Spot ETFs Within the Year…Possibility of US Government Reserves?

Multiple altcoin ETFs expected to launch this year are also considered major boons for the altcoin market.

Currently, the most likely products to be approved within the year are Solana and Ripple spot ETFs. Although the U.S. Securities and Exchange Commission (SEC) has once again delayed the approval decision for these, considering the changes in the U.S. regulatory stance, the approval is still highly likely within the year.

In particular, Solana is evaluated to have opened the path for spot ETF listing further with the recent