The cryptocurrency world is buzzing after President Trump’s weekend announcement revealing plans for a U.S. crypto strategic reserve, potentially including XRP, Solana, Cardano, Bitcoin, and Ethereum. Wall Street giant Citi has now weighed in, suggesting this bold move could reshape the legitimacy of digital assets in America’s financial landscape.

In a research report released Monday, Citi analyst Alex Saunders emphasized that “the announcement of further plans for the U.S. government potentially to become a strategic holder of digital assets would add to the perceived legitimacy” of cryptocurrencies as an asset class.

The report highlights that while the U.S. government already holds approximately $19 billion in cryptocurrencies (primarily Bitcoin) compared to its $750 billion in gold reserves, most current holdings came from confiscations rather than strategic investments.

This suggests that acquiring other digital assets like XRP, Solana, and Cardano would likely require open-market purchases, directly injecting government funds into the crypto market.

However, Citi expressed concerns about the lack of clear selection criteria for which tokens would be included in this national reserve. The bank warned that pre-announcing such investments could negatively impact prices, similar to what happened with the UK government’s gold sales in the late 1990s.

“Selection criteria are not currently clear,” the report stated, suggesting that additional transparency around how tokens would be chosen could provide stronger market support.

Last month, broker Bernstein proposed that funding for these cryptocurrency purchases could come from the Federal Reserve issuing debt or potentially selling some of its gold reserves.

As the crypto community eagerly awaits more details, questions remain about implementation timeline, purchase strategies, and whether additional tokens might join the President’s initial selections.