Trump’s strategic crypto reserve. Credit: Shutterstock, miss.cabul
U.S. President Donald Trump has announced a new “strategic crypto reserve” with the inclusion of five major digital assets.
After the announcement on Truth Social, crypto markets soared. The post read: “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. We are MAKING AMERICA GREAT AGAIN!”
One hour after the initial post, Trump posted a reply that said: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”
Crypto prices surge following Trump’s strategic reserve announcement
Shortly after Trump’s announcement, digital currencies rallied. XRP surged by 34 per cent, Solana gained 22 per cent, and Cardano saw an increase of over 63 per cent. Meanwhile, Bitcoin and Ethereum climbed by 10 per cent and 12 per cent, as reported by CBS News. According to CoinGecko, the cryptocurrency market added more than $300 billion in value within hours.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate of 21Shares. Others, like James Butterfill of CoinShares, were surprised by the inclusion of digital assets beyond Bitcoin, viewing it as a move to bolster the broader crypto sector.
White House Crypto Summit on March 7
Further details are expected at the upcoming White House Crypto Summit on March 7, where industry leaders and investors will discuss the implications of the strategic reserve. David Sacks, Trump’s appointed AI and Crypto Czar, confirmed the event on social media.
While the announcement has lifted markets, analysts remain cautious. Some experts argue that an act of Congress may be necessary to implement the reserve, while others suggest the U.S. Treasury’s Exchange Stabilization Fund could facilitate its creation.
The move marks a stark contrast to the approach taken by former President Joe Biden, whose administration had tightened regulations on the crypto sector to curb fraud and money laundering. Since Trump’s return to office, the Securities and Exchange Commission (SEC) has withdrawn investigations into several crypto firms, including a lawsuit against Coinbase, another is expected to be dropped against Ripple Labs (developer of XRP).
With regulatory shifts and institutional adoption gaining momentum, the coming months will be crucial in determining the success of the U.S. strategic crypto reserve.
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