In a surprising move, former President Donald Trump revealed plans to create a "Crypto Strategic Reserve," leading to an immediate surge in the prices of major cryptocurrencies.
The reserve would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), all of which saw significant price increases following Trump's announcement.
The news comes after Trump made the bold claim on his social media platform, Truth Social, that the United States would become "the Crypto Capital of the World."
In a series of posts, he outlined how his executive order would direct the Presidential Working Group to move forward with the creation of a national crypto reserve. The reserve would hold key cryptocurrencies like XRP, SOL, and ADA, while BTC and ETH would also play a central role.
According to Business Insider, Trump's announcement sent the market into a frenzy. XRP surged by 30%, Solana rose 21%, and Cardano shot up by 61%.
Bitcoin and Ethereum also saw gains, with Bitcoin increasing by 9% and Ethereum rising by 12%. By Sunday afternoon, Ethereum was trading at $2,500, while Bitcoin reached $94,069, according to CoinGecko.
This move marks a stark contrast from Trump's earlier stance on cryptocurrencies. During his presidency, he famously called Bitcoin a "scam" and expressed concerns over its volatility.
However, his recent comments and actions suggest a complete shift in his position. In fact, Trump's latest initiative aligns with a pledge he made in July at the Bitcoin 2024 conference, where he vowed to hold the federal government's cryptocurrency assets in a "national Bitcoin stockpile."
This latest announcement, however, goes further by suggesting the active purchase of cryptocurrencies for the reserve, as opposed to simply holding seized assets.
JUST IN: 🇺🇸 President Trump announces he's creating a Crypto Strategic Reserve, with no mention of Bitcoin 👎 pic.twitter.com/kKwXqCRUpM
— Bitcoin Magazine (@BitcoinMagazine) March 2, 2025
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Trump Eyes National Crypto Reserve to Combat Market Instability
The idea of a strategic reserve is not new; the US already maintains reserves for commodities like oil.
These reserves are set aside to be used in times of crisis or supply chain disruptions. Similarly, Trump's "Crypto Strategic Reserve" could serve as a safeguard against market fluctuations or other unforeseen challenges in the cryptocurrency space, BBC said.
Trump's announcement has led to renewed interest in digital currencies, which had seen a downturn following a spike after his election. The move also highlights his growing engagement with the crypto world.
In recent months, both Trump and his wife, Melania, have launched their own cryptocurrency ventures, adding fuel to speculation that they may be seeking to profit from the growing interest in digital currencies.
While the specifics of how the crypto reserve will operate remain unclear, more details are expected to emerge on Friday when Trump hosts the first-ever Crypto Summit at the White House.
Trump's latest move comes at a time when the cryptocurrency market is facing heightened scrutiny.
His previous administration, under President Joe Biden, had initiated crackdowns on crypto due to concerns about fraud and money laundering. It remains to be seen how the new reserve will affect future regulations and policies surrounding digital currencies.
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