Washington D.C. – In a groundbreaking announcement that could reshape the landscape of cryptocurrency in the United States, President Donald Trump declared the creation of a new “US Strategic Crypto Reserve” featuring five prominent digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano. The announcement, made on Trump’s social media platform Truth Social, has already spurred a notable surge in the values of these cryptocurrencies.
In his post, Trump emphasized that the reserve, established under an executive order signed in January, will prioritize Bitcoin and Ethereum as the foundational assets. Following the announcement, Bitcoin saw an 11% rise, reaching $94,164, while Ethereum surged 13% to $2,516. The broader cryptocurrency market experienced a boost of approximately 10%, increasing in value by over $300 billion.
Industry experts have reacted with enthusiasm to Trump’s announcement. Federico Brokate, head of U.S. business at digital asset investment firm 21Shares, stated that this initiative indicates a shift towards a more active governmental role in the cryptocurrency sector. “This move signals that the U.S. government is going to play an active role in the crypto economy,” Brokate noted. He added that it could accelerate institutional adoption, enhance regulatory clarity, and bolster the United States’ leadership position in digital assets.
James Butterfield, head of research at crypto investment firm Coinshares, expressed surprise at the inclusion of multiple cryptocurrencies in the reserve. “Unlike Bitcoin, these assets are more akin to technology investments. The announcement reflects the broader acceptance of crypto technology rather than its underlying financial principles,” he remarked.
The cryptocurrency industry has notably supported Trump during his 2024 campaign, and his administration has already taken significant steps to foster a favorable environment for digital assets. Trump is set to host his first crypto summit at the White House on Friday, coinciding with reports that his family has launched its own cryptocurrency.
In contrast, the previous administration under President Joe Biden had implemented stricter regulations on the crypto market, aiming to safeguard consumers from fraud and money laundering. However, recent developments under Trump’s leadership have included pressuring the Securities and Exchange Commission to retract investigations into crypto companies and dropping a lawsuit against Coinbase.
Despite the remarkable rally in the cryptocurrency market following Trump’s election, analysts suggest that the momentum has waned in recent weeks. Observations indicate that market stability may return if the US Federal Reserve signals potential interest rate cuts or if the Trump administration provides a coherent legal framework for cryptocurrencies.
Geoff Kendrick, an analyst at Standard Chartered, offered a bold prediction, asserting that Bitcoin could reach $500,000 during Trump’s presidency—an astonishing leap from its all-time high of $109,071.
However, the establishment of a crypto reserve has sparked legal debates regarding the need for congressional approval. Experts suggest that the U.S. Treasury might leverage the “Exchange Stabilization Fund” to create the reserve, which traditionally allows the government to buy and sell foreign currencies.
Additionally, discussions are underway by Trump’s crypto team about the potential incorporation of cryptocurrencies seized by law enforcement agencies into the reserve, although no final decisions have been reached yet.
As the cryptocurrency market braces for potentially transformative changes under Trump’s administration, stakeholders are keenly observing how this bold initiative will unfold and its implications for the future of digital currency in America.