Trump Calls for Crypto Strategic Reserve

Trump Advocates for a U.S. Cryptocurrency Reserve

Former President Donald Trump has publicly endorsed the establishment of a national reserve for cryptocurrency assets. Initially, he specifically named XRP, Solana, and Cardano as potential components of this reserve.

Subsequently, Trump indicated that Bitcoin (BTC) and Ethereum (ETH) would “obviously” also be included within the framework of the proposed reserve.

Initial Directive and Working Group

In January, Trump previously issued an executive order initiating the formation of a dedicated working group. This group was tasked with the study and formulation of recommendations concerning cryptocurrency policy.

A key aspect of their mandate involved exploring “the potential creation and maintenance of a national digital asset stockpile.”

Stockpile Criteria and Asset Sources

The working group was specifically instructed to “propose criteria for establishing such a stockpile.”

Potential assets for this stockpile could be sourced from cryptocurrencies lawfully seized by the Federal Government through its law enforcement operations.

Trump's Vision for a Crypto Reserve

On Sunday, Trump expressed a stronger commitment to realizing this reserve through a post on his social media platform, Truth Social.

He stated, “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.” He further clarified that his prior Executive Order on Digital Assets directed the Presidential Working Group to advance a Crypto Strategic Reserve encompassing XRP, SOL, and ADA.

Trump affirmed his intention to position the U.S. as “the Crypto Capital of the World.”

Market Response to Trump's Announcement

Following Trump’s initial post, the prices of XRP, Solana, and Cardano experienced significant increases, with gains of 20% or more.

In a subsequent post, Trump expanded the scope of the reserve, stating, “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”

Shifting Regulatory Landscape

Trump acknowledged that his executive order aimed to counteract the existing cryptocurrency regulatory framework established during the Biden administration.

Under a potential future Trump administration, the Securities and Exchange Commission (SEC) is anticipated to adopt a more lenient and deregulatory approach towards the cryptocurrency industry.