Trump announces U.S. strategic crypto reserve, boosting cryptocurrency prices

Cryptocurrencies experienced a notable rally on Sunday following President Donald Trump's announcement regarding the establishment of a strategic crypto reserve for the United States.

Cryptocurrencies experienced a substantial rally on Sunday following President Donald Trump’s announcement regarding the establishment of a strategic crypto reserve for the United States. This reserve will encompass Bitcoin, Ether, XRP, Solana’s SOL token, and Cardano’s ADA.

Trump announces U.S. strategic crypto reserve, boosting cryptocurrency prices

In a post on Truth Social, Trump stated, “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the 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, and ADA. I will make sure the U.S. is the Crypto Capital of the World.”

In a subsequent post, he emphasized, “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”

Following the announcement, XRP surged 33%, while Solana’s token increased by 25%, and Cardano’s cryptocurrency rose more than 60%. Bitcoin climbed 10% to $94,343.82, recovering from a three-month low below $80,000 recorded on Friday.

Ether also experienced a gain of 13% amidst a challenging year for the cryptocurrency.

Trump is set to host the first White House Crypto Summit on Friday, which may provide further insights from investors.

This announcement marks the first time Trump has distinguished between a crypto “reserve,” which implies ongoing purchases, and a “stockpile,” which would simply preserve the existing crypto holdings of the U.S. government.

The concept of a Bitcoin stockpile was initially introduced by Trump last summer during the Bitcoin 2024 conference, where he sought support from the crypto community. During this event, Wyoming Senator Cynthia Lummis proposed the establishment of a national strategic bitcoin reserve.

Interest in the strategic Bitcoin reserve intensified after Trump’s re-election in November, pushing Bitcoin prices to new highs. However, momentum dimmed following a January executive order instructing the President’s Working Group on crypto to assess the creation of a digital asset stockpile. The response from the crypto industry was mixed, especially due to the order’s focus on stockpiling rather than building a reserve.

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"I am directing the Presidential Working Group to assess the creation of a digital asset stockpile to elevate this critical industry after years of corrupt attacks by the Biden administration," Trump wrote in a post on Truth Social on Sunday.

The administration is also tasked with determining whether new legislation or executive action is required to establish the initiative, according to the executive order issued in January.

The Trump administration is known for its unconventional policies, and the creation of a national crypto reserve would be yet another example of this. It remains to be seen how such a policy would affect the broader economy and financial markets.