TLDR
- Trump announced a strategic U.S. crypto reserve including Bitcoin, Ethereum, XRP, Solana, and Cardano
- Cryptocurrency prices jumped sharply following the announcement, with some tokens seeing gains of over 60%
- The move follows Trump’s executive order supporting digital assets in his first days in office
- Some critics worry about potential conflicts of interest, as certain Trump advisers have investments tied to the crypto market
- A White House cryptocurrency summit is planned for this month, where more details may emerge
President Donald Trump has announced the creation of a U.S. strategic crypto reserve that will include Bitcoin, Ethereum, and several other tokens, causing a major price surge across the cryptocurrency market.
The announcement, made on his Truth Social platform, marks a key development in the administration’s push to position America as a global leader in digital assets.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration,”
Trump wrote. This follows his January executive order supporting digital assets and blockchain technology.
Trump specifically named five cryptocurrencies for inclusion in the reserve. He stated that Bitcoin and Ethereum would be “at the heart of the reserve,” while also naming XRP, Solana, and Cardano.
The announcement sent prices climbing across the board. Bitcoin rose as much as 11% to $95,084 before settling around $93,000.
BTC Price
Ethereum gained up to 14% to $2,541 before retreating slightly. The gains for smaller tokens were even more dramatic.
Solana, which hosts many memecoins including Trump’s own coin, jumped 26% to $180. Cardano’s ADA token soared 71% to $1.15.
XRP, the token affiliated with payments group Ripple, rose 37% to $3. These price jumps came after a period of selling pressure in the crypto market.
The concept of a strategic reserve has been championed by many crypto traders. They view it as similar to Fort Knox for gold, potentially lending legitimacy to digital assets.
Proposals for such a reserve have been working their way through government. One Republican-backed Senate bill would direct the U.S. Treasury to buy 1 million Bitcoin, worth roughly $94 billion at current prices.
The concept has faced some opposition. Critics, including some Republican lawmakers, worry it puts taxpayer funds at risk.
There are also concerns about conflicts of interest. Some Trump advisers have investments tied to the crypto market.
David Sacks, the White House artificial intelligence and cryptocurrency tsar, founded Craft Ventures. The firm still holds stakes in crypto start-ups.
According to sources, Sacks and his firm sold their direct cryptocurrency holdings soon after Trump’s inauguration. This included all holdings in Bitcoin, Solana, and Ethereum.
Sacks is currently undergoing a government ethics review. After this process, he will provide a full update on his holdings.
Change of Direction
The Trump administration has been quick to halt enforcement actions against the crypto industry. Under the previous administration, the top securities regulator had described crypto as the “Wild West… rife with fraud, scams and abuse.”
Coinbase, a major crypto exchange, reported last month that the SEC had agreed to drop its case against the company. The SEC had accused Coinbase of failing to register as a national securities exchange.
Other crypto companies including Gemini and OpenSea have indicated that securities regulators have dropped investigations into their businesses. This represents a major shift in the regulatory approach.
The White House will host its first cryptocurrency summit this month. Traders will be watching for signs that the president’s working group is moving closer to launching the crypto stockpile.
Trump’s announcement clarified his support for a “reserve” rather than just a “stockpile.” This distinction is important to crypto investors.
A reserve suggests actively buying crypto in regular installments. A stockpile would simply mean not selling any crypto currently held by the U.S. government.
There are differing opinions within the crypto community about the reserve’s makeup. Many feel that it should hold only Bitcoin, as it’s the most tested and decentralized cryptocurrency.
Others reject the idea of a government reserve altogether. They worry it could undermine the dollar or be easily undone by a future administration.
“The next election could see a new administration come in and need to find money to pay debt, social security, etc. They could sell the reserve,” said Adam Blumberg of Enclave Group. “I just don’t like the idea of the U.S. government owning the most decentralized asset ever.”
These concerns highlight the complex relationship between government policy and a technology originally designed to operate outside traditional financial systems.
