Trump Announces Plans to Create U.S. Strategic Cryptocurrency Reserve

President Donald Trump announced plans to create a U.S. strategic cryptocurrency reserve that will include five major digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano.

President Donald Trump announced plans to create a U.S. strategic cryptocurrency reserve that will include five major digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano.

The announcement, which came through a post on Truth Social on Sunday, triggered immediate reactions in the market. Bitcoin rose more than 11% to $94,164, while Ethereum increased by approximately 13% to $2,516.

XRP experienced the most dramatic surge, jumping 33% after the announcement. Solana's token went up by 25%, and Cardano's coin experienced an increase of over 60%.

The total cryptocurrency market added more than $300 billion in value within hours of Trump's announcement. The surge reflects the market's positive response to potential government involvement in the crypto sector.

Trump made the announcement through two separate posts. The first one highlighted the inclusion of XRP, Solana, and Cardano. A follow-up post confirmed that Bitcoin and Ethereum would be "at the heart of the Reserve."

This move marks a shift from Trump's earlier stance. Last summer, during the Bitcoin 2024 conference in Nashville, Trump had only discussed the possibility of a Bitcoin stockpile.

Moreover, the administration's approach to cryptocurrency differs from previous government positions. Under Biden's presidency, regulators had taken a stricter stance on cryptocurrency oversight and regulation.

Recently, however, there have been changes in regulatory oversight, suggesting a new direction. The Securities and Exchange Commission has withdrawn several investigations into crypto companies and dropped a lawsuit against Coinbase (NASDAQ:COIN), the largest U.S. crypto exchange.

Trump is planning to host the first White House Crypto Summit on Friday, where more details about the administration's plans for the strategic reserve are expected to be revealed.

Questions remain about the legal framework for establishing the reserve. Some experts suggest it could be created through the U.S. Treasury's Exchange Stabilization Fund, which has authority to purchase foreign currencies.

The administration is also considering using cryptocurrencies seized in law enforcement actions as part of the reserve. This approach could provide an initial supply of digital assets.

As for market analysts' predictions, Standard Chartered's Geoff Kendrick anticipates Bitcoin could reach $500,000 before Trump leaves office.

Recent regulatory filings show increased interest from institutions, with banks and sovereign wealth funds joining hedge funds in purchasing crypto assets.

Asset managers have also been increasing their allocations to U.S. ETFs tied to spot Bitcoin prices, according to fourth-quarter 2024 filings.

The crypto community has mixed reactions to the plan, with some members arguing that a government reserve should only include Bitcoin and others opposing any government holdings of cryptocurrencies.