U.S. President Donald Trump has unveiled plans to establish a U.S. strategic reserve of cryptocurrencies, naming five digital assets that will be included. The announcement, made Sunday on Truth Social, sent crypto markets soaring.
Bitcoin, Ether Among Key Cryptocurrencies in U.S. Reserve
Trump confirmed that his January executive order on digital assets would lead to the creation of a crypto stockpile featuring Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA). More than an hour later, he further emphasized, “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
Following the news, Bitcoin surged over 11% to $94,164, while Ether climbed 13% to $2,516. The total crypto market value increased by over $300 billion, according to CoinGecko.
Market Experts Weigh In on Government’s Crypto Strategy
The move signals a significant shift in the U.S. government’s stance on digital assets. Federico Brokate, head of U.S. business at 21Shares, noted that the decision could accelerate institutional adoption and strengthen U.S. leadership in digital asset innovation.
Meanwhile, James Butterfill, head of research at CoinShares, expressed surprise at the inclusion of assets beyond Bitcoin. “Unlike Bitcoin, these tokens are more akin to tech investments. This move suggests a broader embrace of the crypto industry, beyond just decentralized finance.”
Trump’s Crypto-Friendly Policies Mark Departure from Biden Era
Trump’s support for the crypto industry has been evident throughout his 2024 election campaign, positioning himself as a pro-crypto leader. His administration has already withdrawn SEC investigations into major crypto firms and dropped a lawsuit against Coinbase (COIN.O). In contrast, former President Joe Biden’s administration took a strict regulatory stance, cracking down on crypto to combat fraud and money laundering.
On Friday, Trump will host the first-ever White House Crypto Summit, further solidifying his administration’s pro-crypto policies.
Crypto Prices Still Struggle Despite Government Backing
Despite the excitement following Trump’s election win, cryptocurrency prices have been volatile in recent weeks, erasing earlier gains. Analysts say the market is awaiting a clear regulatory framework or signs of Federal Reserve interest rate cuts to drive further growth.
Geoff Kendrick, an analyst at Standard Chartered, has projected that Bitcoin could reach $500,000 before Trump leaves office, far exceeding its all-time high of $109,071. Meanwhile, banks and sovereign wealth funds have joined hedge funds in increasing their crypto investments, as shown in recent regulatory filings.
Uncertainty Over Legislative Approval for Crypto Reserve
Experts remain divided on whether an act of Congress is required to establish the U.S. crypto reserve. Some argue that the U.S. Treasury’s Exchange Stabilization Fund—which is used to buy and sell foreign currencies—could be utilized to set up the reserve without congressional approval.
Reports suggest Trump’s crypto group had considered using confiscated digital assets from law enforcement actions as a potential source for the reserve.
Looking Ahead: What’s Next for U.S. Crypto Policy?
As Trump’s administration pushes ahead with pro-crypto initiatives, all eyes are on the White House Crypto Summit and potential policy changes that could further shape the future of digital assets in the U.S.
