Australian officials have dismissed the idea of establishing a national cryptocurrency reserve, prioritizing regulatory frameworks instead, while the US under Trump advances plans for a crypto reserve.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Following the United States government’s efforts to develop a national crypto reserve, Australian officials have rejected the idea of a digital asset reserve.
As reported by IBTimes, a spokesperson for Assistant Treasurer and Financial Services Minister, Stephen Jones stated that the Australian government prioritizes regulating digital asset platforms rather than accumulating cryptocurrencies.
Under President Donald Trump, the US government is more appreciative of having digital currencies as part of the national crypto reserve. However, Australia is taking a more strict regulatory stance.
Speaking on the above, the present Australian leadership has stressed the importance of regulation ahead of having a national digital asset reserve.
“The Albanese government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with industry,” the spokesperson stated.
Instead of establishing a crypto reserve, Australia’s focus remains on strengthening its control over the digital asset economy. The country’s officials stated that the primary goal is to ensure consumer protection and market stability.
However, this cautious system contrasts with Trump’s strategy, which positions cryptocurrency as a national asset.
Furthermore, President Trump’s decision to develop the US Crypto Reserve has fueled hype in the digital currency market.
For example, five major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), have been selected for inclusion in the reserve. This update led to positive market sentiment, which has also resulted in a surge in their prices.
Following the announcement, Solana increased by nearly 20%, Cardano spiked by over 63%, and XRP gained almost 28%. Even Bitcoin and Ethereum, which had experienced volatility in recent weeks, rose by 8% and 11%, respectively.
In addition, many crypto stocks have also jumped remarkably. For example, popular Bitcoin buyer Strategy saw its stock increase by 6.44% to $255.43. Mara Holding and Coinbase Global Inc. prices also saw an increase in stock boom.
In addition, President Trump asserted that this recent move was necessary to counter the past administration’s regulatory hostility towards crypto.
He stated, “A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.”
Still, industry leaders remain divided on the long-term implications. Caroline Bowler, CEO of Australian crypto exchange BTC Markets, expressed concerns about the consequences of a government-backed reserve.
“One of the core principles of cryptocurrency is its ability to exist outside of government influence,” Bowler stated. “If major assets become tied to specific jurisdictions, it could lead to a concentration of power that contradicts the foundational ethos of crypto.”
More importantly, President Trump is clearly departing from the previous Biden administration. The Biden admin claimed it prioritized consumer and fraud prevention over crypto expansion.
Since taking office, the president has pushed for friendlier policies toward the industry. Some of these new strategies include ending regulatory investigations into major crypto firms and dropping a lawsuit against Coinbase.
His administration has also announced the first White House Crypto Summit, set to take place this Friday. Per an earlier update, discussions on the future of digital assets will be held at the event alongside industry leaders.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
