SEC Addresses Cardano's Role in U.S. Strategic Reserve: ADA Price Nears Breakout

Early this month, President Donald Trump's strategic crypto reserve was announced. The list includes BTC, ETH, XRP, SOL, and ADA.

The U.S. Securities and Exchange Commission (SEC) has spoken about the role of Cardano in President Donald Trump’s strategic crypto reserve and broader digital asset strategy.

Earlier this month, President Trump’s initiative to create a strategic crypto reserve and position the U.S. as a global crypto hub was announced. This move aims to establish the nation’s leadership in digital assets.

Announced during an interview with former FTX CEO Sam Bankman-Fried, the president revealed that the administration is working on legislation to designate Bitcoin (BTC) as the primary reserve asset.

In addition to Bitcoin, President Trump’s administration is also investing in other cryptocurrencies, including Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). These investments are part of a broader strategy to support the development of digital asset technologies and strengthen the U.S. financial system.

The SEC has now released a document clarifying Donald Trump’s Bitcoin reserve statement and the broader U.S. crypto strategy.

The document, part of an administrative case filed on August 10, focuses on a dispute with Stanford University over using blockchain to record and verify academic credentials.

The SEC claims that universities and institutions can utilize Cardano’s blockchain for this purpose.

“Cardano’s blockchain can be used by universities and other institutions to issue and fully verifiable diplomas, certificates, and advanced degrees, rendering them tamper-proof and immune to counterfeiting,” the SEC stated.

Institutions can use this technology to easily track and verify the credentials of applicants. Cardano’s smart contracts also allow for the creation of self-executing agreements, automating legal, business, and administrative processes.

In addition, Cardano’s blockchain provides a secure framework for government services, such as identity management, public records, and digital governance solutions.

Its blockchain can also be used to track public projects, supply chains, and utilities, leveraging the technology’s trustworthiness and transparency for optimal results.

“The focus on trust, decentralization, and security makes Cardano particularly well-suited for these varied domains of application,” the SEC added.

ADA Price Nears Breakout

Ali from ali_charts on X suggests that Cardano is about to break out. According to him, busting out of the current triangle pattern will trigger a 15% price move.

The chart posted shows a symmetrical triangle pattern forming on the Cardano (ADA)/USDT on the 1-hour timeframe. The price is currently trading within the converging trendlines of this symmetrical triangle, a pattern that often signals an impending breakout. The measured move from the initial drop suggests a potential 15% price movement once ADA breaks out of the triangle.

With the current price hovering around the $0.7423 mark and nearing the upper trendline, there could be a possibility of the price breaking out to the upside.

If ADA manages to break above the upper trendline with substantial volume, the price could experience a rally of approximately 15%, potentially reaching around the $0.85-$0.86 levels. The breakout confirmation would be a strong 1-hour or 4-hour candle closing above the trendline.

However, if ADA instead breaks below the lower trendline, the price could be expected to drop by the same 15% magnitude, aiming for the levels around $0.63-$0.64. A breakdown confirmation would be a strong candle closure below the support trendline.

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