By Trevor HunnicuttWEST PALM BEACH, Florida (Reuters) – President Donald Trump made a groundbreaking decision regarding digital assets, revealing the names of five cryptocurrencies he plans to include in a newly established U.S. crypto strategic reserve. This announcement caused a significant surge in the market value of each of the mentioned assets. Trump took to social media to disclose that as per his January executive order on digital assets, a reserve comprising bitcoin, ether, XRP, SOL, and ADA will be formed. Prior to this announcement, the names of these assets had not been made public.
Following Trump’s declaration, the value of the assets experienced an increase ranging from 8% to 62% in trading on Sunday. The President emphasized that his directive to the Presidential Working Group was to proceed with the establishment of a Crypto Strategic Reserve that would encompass XRP, SOL, and ADA. He affirmed, “I will ensure that the United States becomes the Crypto Capital of the World.” Later, Trump further added, “And, of course, BTC and ETH, as other valuable Cryptocurrencies, will be at the core of the Reserve.”
Bitcoin, the leading cryptocurrency by market capitalization, witnessed an approximately 8% surge, reaching $90,828, while Ether, the second-largest cryptocurrency, saw an increase of 8.3%, reaching $2,409. Trump, a Republican, garnered support from the crypto industry during his 2024 election campaign and has promptly shown his backing for their policy objectives. In contrast to his Democratic predecessor, Joe Biden, who imposed strict regulations on the industry to safeguard Americans from fraud and money laundering, Trump has been more supportive of cryptocurrencies.
Despite the initial excitement in the industry following Trump’s election victory, recent weeks have seen a sharp decline in cryptocurrency prices, with many major digital currencies erasing most of the gains. Analysts suggest that the market requires a catalyst to propel it higher, such as indications of interest rate cuts by the U.S. Federal Reserve or a clear pro-crypto regulatory framework from the Trump administration.
Trump is scheduled to host the inaugural White House Crypto Summit on Friday, while his family has also introduced their own coins. The exact mechanism and operations of the new reserve remain unclear. Opinions among analysts and legal experts are split on whether congressional action will be needed for its establishment. Some have proposed that the reserve could be formed using the U.S. Treasury’s Exchange Stabilization Fund, which has the capacity to trade foreign currencies.
The crypto group under Trump’s administration had initially aimed to explore the possibility of creating the reserve using cryptocurrencies confiscated in law enforcement operations. (Reporting by Trevor Hunnicutt and Katharine Jackson; Editing by Alistair Bell and Bill Berkrot)
