Trump Unveils Plan for US Crypto Reserve, Boosting Market Values
Bitcoin, Ethereum, XRP, Solana, and Cardano Surge Following Announcement
US President Donald Trump has taken a significant step towards integrating cryptocurrency into the fabric of the nation’s financial infrastructure, announcing plans to create a strategic cryptocurrency reserve. This move is seen as part of his broader goal to position the United States as the “Crypto Capital of the World.”
In a series of posts on Sunday, Trump revealed that five major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—would be included in the new reserve. The announcement triggered a remarkable rise in the market prices of these coins, with XRP, Solana, and Cardano experiencing gains of up to 62%, while Bitcoin and Ethereum saw increases of more than 10%.
The proposed reserve will likely be managed by the Presidential Working Group, which was established under an executive order Trump signed earlier this year. This group is tasked with reviewing cryptocurrency regulations and proposing new policies. Trump’s announcement marks the latest in a series of pro-crypto actions that began during his campaign, setting him apart from the previous administration’s stance. Under President Joe Biden, the US government had implemented a crackdown on cryptocurrencies due to concerns over fraud, money laundering, and financial instability.
According to Trump’s social media post, the new strategic reserve will include the five cryptocurrencies, with Bitcoin and Ethereum at its core. The reserve’s creation follows previous efforts by Trump to integrate digital assets into the national economy. The reserve could potentially involve the federal government’s seizure of cryptocurrencies through law enforcement, but how this would operate legally remains unclear.
The cryptocurrency market has responded positively to the news. XRP saw an increase of 62%, while Solana and Cardano saw their values climb sharply as well. Bitcoin and Ethereum experienced gains of over 10%. The surge highlights the growing optimism surrounding cryptocurrency in the US, especially with the announcement of potential government backing.
While the details of the reserve remain scarce, more information is expected to be shared at the upcoming Crypto Summit at the White House, scheduled for Friday. This summit will likely provide further insights into the reserve’s structure, how the federal government will manage the stockpile, and whether legislation will be required to formalize the initiative.
Trump’s approach to cryptocurrencies has evolved considerably. In 2021, he criticized Bitcoin, calling it a “scam” during an interview with Fox News. However, more recently, he and his wife Melania launched their own cryptocurrencies, sparking criticism that they might be seeking to profit from policies formed during his presidency. Despite these concerns, Trump’s current position appears to be one of embracing cryptocurrencies as part of the nation’s economic future.
In addition to the new reserve, Trump has also directed the Presidential Working Group to explore the creation and maintenance of a national digital asset stockpile. This reserve could include digital assets seized by the federal government, raising questions about the legal and logistical processes behind such a move.
The development has led to an upturn in cryptocurrency prices, following a period of declining market values after the initial post-election surge. The announcement, paired with an upcoming summit, signals that the Trump administration is committed to forging a new path for cryptocurrencies within the United States’ economic structure.
Whether the creation of a cryptocurrency reserve will require Congressional approval remains uncertain. If the initiative moves forward without additional legislation, it could set a major precedent for how the US government interacts with digital currencies. Investors and market observers will be watching closely to understand the full scope and implications of Trump’s announcement.
