On Sunday, President Donald Trump laid out plans to potentially fulfill a promise to the Silicon Valley cryptocurrency backers

This reserve, he indicated, would encompass well-known cryptocurrencies including Bitcoin and Ethereum, as well as tokens like XRP, Solana, and Cardano.

President Donald Trump's plans to fulfill a promise to the Silicon Valley cryptocurrency backers who invested millions into his Super PAC for his 2024 campaign appear to be progressing. In an effort to ensure the U.S. becomes the “Crypto Capital of the World,” the president announced on Truth Social on Sunday that his administration aims to establish a “U.S. Crypto Reserve” as part of an executive order that promotes the development of digital assets.

President Donald Trump's plans to fulfill a promise to the Silicon Valley cryptocurrency backers who invested millions into his Super PAC for his 2024 campaign appear to be progressing. In an effort to ensure the U.S. becomes the “Crypto Capital of the World,” the president announced on Truth Social on Sunday that his administration aims to establish a “U.S. Crypto Reserve” as part of an executive order that promotes the development of digital assets.

This reserve, he indicated, would include well-known cryptocurrencies such as Bitcoin and Ethereum, plus tokens like XRP, Solana, and Cardano.

This reserve, he indicated, would include well-known cryptocurrencies such as Bitcoin and Ethereum, plus tokens like XRP, Solana, and Cardano.

The nature of this strategic reserve, particularly whether the government would acquire cryptocurrencies for the reserve using taxpayer money—a move that would require Congressional approval—remains unclear. However, the news has buoyed blockchain enthusiasts. Currencies that had experienced gains since Trump’s election but had recently declined surged again, with Bitcoin seeing a notable 10 percent increase.

The nature of this strategic reserve, particularly whether the government would acquire cryptocurrencies for the reserve using taxpayer money—a move that would require Congressional approval—remains unclear. However, the news has buoyed blockchain enthusiasts. Currencies that had experienced gains since Trump’s election but had recently declined surged again, with Bitcoin seeing a notable 10 percent increase.

But the optimism was short-lived as Trump announced on Monday that stiff tariffs on imports from Canada and Mexico are forthcoming, triggering significant losses on Wall Street and wiping out recent gains in the crypto market.

But the optimism was short-lived as Trump announced on Monday that stiff tariffs on imports from Canada and Mexico are forthcoming, triggering significant losses on Wall Street and wiping out recent gains in the crypto market.

By Monday afternoon, Bitcoin, Ethereum, Solana, and XRP had reverted to their prior values, while Cardano lost about 20 percent of its peak worth.

By Monday afternoon, Bitcoin, Ethereum, Solana, and XRP had reverted to their prior values, while Cardano lost about 20 percent of its peak worth.

Even before these losses, experts expressed skepticism regarding the potential advantages of a national crypto reserve. Some industry insiders voiced concerns over the White House’s interest in including more volatile currencies, an aspect that could be problematic. (In a subsequent post following his initial announcement, Trump clarified that Bitcoin and Ethereum would be included in the reserve’s assets, seemingly in response to concerns.) Economists have characterized the crypto reserve concept as beneficial for crypto investors but risky for average taxpayers. A few journalistic critics have even labeled it as blatant corruption—noting that Trump’s crypto advisor, David Sacks, a tech venture capitalist and associate of Elon Musk, holds investments in the five cryptocurrencies mentioned on social media.

Even before these losses, experts expressed skepticism regarding the potential advantages of a national crypto reserve. Some industry insiders voiced concerns over the White House’s interest in including more volatile currencies, an aspect that could be problematic. (In a subsequent post following his initial announcement, Trump clarified that Bitcoin and Ethereum would be included in the reserve’s assets, seemingly in response to concerns.) Economists have characterized the crypto reserve concept as beneficial for crypto investors but risky for average taxpayers. A few journalistic critics have even labeled it as blatant corruption—noting that Trump’s crypto advisor, David Sacks, a tech venture capitalist and associate of Elon Musk, holds investments in the five cryptocurrencies mentioned on social media.

Sacks defended his position on X, citing part of a Financial Times article that stated he and his firm, Craft Ventures, had sold their direct cryptocurrency holdings “shortly after Trump’s inauguration.” The article specifies that Craft still retains stakes in various crypto startups. Sacks claimed he divested from Bitcoin, Ethereum, and Solana, though he provided a slightly different timeline, stating that he sold these assets “before the administration began.” A Community Note in response to his post highlighted that Craft is an investor in asset management firm Bitwise, whose CEO disclosed on Sunday that their top five positions align with the same five cryptocurrencies Trump mentioned.

Sacks defended his position on X, citing part of a Financial Times article that stated he and his firm, Craft Ventures, had sold their direct cryptocurrency holdings “shortly after Trump’s inauguration.” The article specifies that Craft still retains stakes in various crypto startups. Sacks claimed he divested from Bitcoin, Ethereum, and Solana, though he provided a slightly different timeline, stating that he sold these assets “before the administration began.” A Community Note in response to his post highlighted that Craft is an investor in asset management firm Bitwise, whose CEO disclosed on Sunday that their top five positions align with the same five cryptocurrencies Trump mentioned.

Sacks, whose government ethics review is still pending, also countered Joe Lonsdale, another affluent venture capitalist and Trump supporter, who criticized Trump’s crypto reserve idea on X, arguing that “Taxation is theft. It should be minimized. It’s wrong to take my money for leftist schemes; it’s equally wrong to tax me for the crypto ambitions.”

Sacks, whose government ethics review is still pending, also countered Joe Lonsdale, another affluent venture capitalist and Trump supporter, who criticized Trump’s crypto reserve idea on X, arguing that “Taxation is theft. It should be minimized. It’s wrong to take my money for leftist schemes; it’s equally wrong to tax me for the crypto ambitions.”

Sacks replied, “No one announced a tax or spending initiative. Perhaps you should wait and see what is actually being proposed.”

Sacks replied, “No one announced a tax or spending initiative. Perhaps you should wait and see what is actually being proposed.”

One challenge in clarifying the details of a potential reserve is that minimal information has been disclosed beyond the diverse asset mix. Even within the crypto trading community, there is some hesitation regarding the idea of the federal government purchasing more Bitcoin with Treasury funds, a tactic that could backfire if the value of the digital currency were to drop dramatically. An alternative suggestion gaining some traction is for the U.S. to accumulate the billions in Bitcoin seized through law enforcement efforts, rather than liquidating it, although this presents its own logistical challenges. The White House is set to host its inaugural crypto summit on Friday, with Sacks indicating on his official government X account that the gathering will bring together “notable founders, CEOs, and investors from the crypto sector.”

One challenge in clarifying the details of a potential reserve is that minimal information has been disclosed beyond the diverse asset mix. Even within the crypto trading community, there is some hesitation regarding the idea of the federal government purchasing more Bitcoin with Treasury funds, a tactic that could backfire if the value of the digital currency were to drop dramatically. An alternative suggestion gaining some traction is for the U.S. to accumulate the billions in Bitcoin seized through law enforcement efforts, rather than liquidating it, although this presents its own logistical challenges. The White House is set to host its inaugural crypto summit on Friday, with Sacks indicating on his official government X account that the gathering will bring together “notable founders, CEOs, and investors from the crypto sector.”

Meanwhile, there’s a pervasive sense of impropriety where the Trump administration and the cryptocurrency market intersect. The Trump family’s first crypto venture, World Liberty Financial, was launched in 2024 and quickly attracted the attention of prominent Chinese crypto entrepreneur Justin Sun. The Securities and Exchange Commission filed a lawsuit against Sun in 2023, accusing his companies, Tron and Rainberry (formerly known as BitTorrent), of fraudulently manipulating crypto markets and unlawfully compensating celebrities including Lindsay Lohan, Jake Paul, and rapper Soulja Boy to promote tokens without revealing their financial incentivization. However, just last week, after Sun accumulated a $75 million stake in World Liberty Financial tokens, the Trump SEC moved to suspend the fraud case against him. The project’s documentation indicates that the Trumps stand to earn 75 percent of the profits from those tokens.

Meanwhile, there’s a pervasive sense of impropriety where the Trump administration and the cryptocurrency market intersect. The Trump family’s first crypto venture, World Liberty Financial, was launched in 2024 and quickly attracted the attention of prominent Chinese crypto entrepreneur Justin Sun. The Securities and Exchange Commission filed a lawsuit against Sun in 2023, accusing his companies, Tron and Rainberry (formerly known as BitTorrent), of fraudulently manipulating crypto markets and unlawfully compensating celebrities including Lindsay Lohan, Jake Paul, and rapper Soulja Boy to promote tokens without revealing their financial incentivization. However, just last week, after Sun accumulated a $75 million stake in World Liberty Financial tokens, the Trump SEC moved to suspend the fraud case against him. The project’s documentation indicates that the Trumps stand to earn 75 percent of the profits from those tokens.

Additionally, just before the president’s January inauguration, the Trump team introduced two so-called meme coins, $TRUMP and $MELANIA (named after the First Lady), which were fraught with ethical dilemmas,