Former President Donald Trump Promises to Create a New U.S. Crypto Reserve

President Donald Trump said Sunday that he aims to create a new U.S. Crypto Reserve, following up on an executive order related to cryptocurrency that he signed in January.

President Donald Trump said Sunday that he aims to create a new U.S. Crypto Reserve, following up on an executive order related to cryptocurrency that he signed in January.

"A U.S. Crypto Reserve will Soar to New Heights in elevating this CRITICAL industry after years of Corrupt & Malicious Attacks by the Radical Left Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL & ADA," Trump wrote on Truth Social.

"I will make sure the U.S. is the Crypto Capital of the World. We must get this done quickly. America First!"

He added: "And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve. I also love Bitcoin and Ethereum!"

Trump is planning to host a White House Crypto Summit on Friday to discuss his vision for the industry and how to realize it through legislation.

What to Know

Trump's comments about the new strategic reserve come as his administration has focused on shoring up cryptocurrency and making it a part of the nation's financial planning.

The president has previously vowed to be America's "first crypto president."

Earlier this year, Trump signed an executive order on January 23, kicking off a 240-day period for the Presidential Working Group on Financial Markets to create guidelines for how to best address digital financial technology.

The working group includes representatives from the Treasury Department, the Federal Reserve, and the Securities and Exchange Commission (SEC), according to the Associated Press.

The move comes as crypto prices have dropped sharply in recent weeks. They initially surged ahead of Trump's inauguration, with Bitcoin hitting a record high in early December, a few weeks after Trump won last year's presidential election.

Trump and his wife, first lady Melania Trump, also launched their own meme coins just ahead of his inauguration on January 20.

According to a disclaimer on the Trump Meme website, Trump Organization-affiliated entities hold 80 percent of the cryptocurrency, and will earn profits from the "trading revenue" generated through sales.

A new report on Sunday claimed that the coins have generated millions of dollars in revenue since their launch.

Where Is Kamala Harris in All Of This? Vice President Kamala Harris has been a vocal supporter of cryptocurrency regulation. She recently spoke at the Blockchain Futurists Conference in San Francisco, where she highlighted the importance of responsible innovation in the crypto space. Harris is also a strong advocate for financial inclusion, and she has spoken about how cryptocurrency can be used to expand access to financial services.

What People Are Saying

One user on X, formerly Twitter, reacted to Trump's post by saying: "Congrats all you #XRP holders! I bet the $XRP haters are punching the air right now."

Another X user, Dean Baker, senior economist at the Center for Economic and Policy Research, wrote in January: "Crypto has no inherent value, so why would the government want to buy it? There is literally no rationale other than to give money to Trump and Musk and their crypto buddies. If they can tap into the government, they've found the ultimate sucker. And very soon, they will control the government."

And Anthony Scaramucci, former Trump White House director of communications and co-host of The Rest Is Politics: US podcast, wrote in January: "Most dangerous thing for country about Trump coin is what comes next. Now anyone in world can essentially deposit money into President of USA's bank account with a couple clicks. Every favour—geopolitical, corporate or personal—is now on sale, right out in the open."

What Happens Next

The Presidential Working Group is expected to release a preliminary report within the next three months, outlining potential regulatory adjustments. Congressional leaders have already signaled interest in reviewing the proposal.

The House Financial Services Committee plans to hold a hearing on cryptocurrency in the spring, where executives from major firms in the industry are expected to testify.

The move follows a bipartisan group of senators who introduced legislation in December that would create a new regulatory framework for the cryptocurrency industry.

The bipartisan legislation, named the Digital Asset Innovation and Protection Act, is being sponsored by Senators Cynthia Lummis (R-WY), Bill Hagerty (R-TN), and Jack Reed (D-RI), and is co-sponsored by Senators Kevin Cramer (R-ND), Tim Kaingar (D-VT), and Greg Schatz (R-MN).

The bill proposes placing crypto firms with at least $10 billion in assets under the supervision of the Federal Reserve, while companies with smaller asset holdings would fall under the purview of the SEC or the Commodity Futures Trading Commission (CFTC).

It also includes provisions for a new stablecoin regulatory program and an interagency working group to monitor the crypto sector.

Lummis, a Republican who chairs the Senate Banking Technology and Innovation Subcommittee, expressed her view that the U.S.