U.S. President Donald Trump revealed on social media that the federal government will establish a strategic reserve of cryptocurrencies. The announcement listed five digital assets—Bitcoin, Ether, XRP, Solana, and Cardano—as part of the reserve.
Trump shared the information on Truth Social, stating that his executive order from January would lead to the formation of the cryptocurrency stockpile. Before this revelation, the specific digital assets included had not been disclosed.
Following the announcement, cryptocurrency prices surged, with XRP jumping 33%, Solana’s SOL rising 22%, and Cardano’s ADA gaining over 60%. Bitcoin climbed 10% to $94,425 after briefly dipping below $80,000, while Ethereum rebounded by 12%.
More than an hour later, Trump clarified that Bitcoin and Ether would be core components of the reserve.
Also Read: See How High Ripple (XRP) Could Surge Following Inclusion in U.S. Crypto Reserve
Market and Institutional Response to the Announcement
According to data from CoinGecko, the overall cryptocurrency market capitalization jumped by over $300 billion following Trump’s statement. The inclusion of XRP, the token associated with Ripple Labs, drew attention, given Ripple’s political engagement through the financial backing of pro-crypto congressional candidates.
Market experts weighed in on the implications of the announcement. Federico Brokate, head of U.S. business at 21Shares, described the move as a sign of increased government involvement in the crypto sector.
He suggested this could accelerate institutional adoption and provide regulatory clarity, strengthening the U.S. position in digital asset innovation. James Butterfill, head of research at CoinShares, expressed surprise at the selection of assets beyond Bitcoin.
He noted that, unlike Bitcoin, many cryptocurrencies resemble technology investments rather than traditional financial reserves. This suggests a policy shift that supports a broader spectrum of digital assets rather than solely focusing on Bitcoin as a decentralized store of value.
Regulatory and Economic Implications
Trump’s pro-crypto stance contrasts with Biden’s stricter regulatory approach. The Biden administration intensified oversight to mitigate fraud and money laundering risks. Since taking office, Trump has reversed several enforcement actions, such as the lawsuit against Coinbase.
Despite this shift, cryptocurrency prices have declined recently and analysts suggest further price increases may depend on Federal Reserve rate cuts or a clear regulatory framework.
Debate continues over how to create a national crypto reserve. Some experts advocate congressional approval, while others argue the U.S. Treasury’s Exchange Stabilization Fund could facilitate purchases independently.
The White House announced the first-ever Crypto Summit on Friday. Industry leaders and policymakers will discuss regulatory frameworks and institutional involvement.
With institutional investors increasing crypto exposure, markets watch how the government implements the reserve. The policy marks a significant shift, but its long-term impact remains uncertain.
Also Read: What Next for Ripple (XRP) Lawsuit Following SEC’s Private Meeting?
