Donald Trump Launches Strategic Crypto Reserve With Bitcoin, Solana, and XRP

In a post on Truth Social, Trump declared that the initiative aims to counter what he called “corrupt attacks” on the crypto industry by the Biden administration. “A U.S. Strategic Crypto Reserve will boost this crucial industry, which is why my Executive Order on Digital Assets has directed the Presidential Working Group to move forward with this initiative,” he wrote.

“And of course, Bitcoin and Ethereum, as foundational cryptocurrencies, will play a central role in the Reserve,” Trump added in a follow-up statement.

Crypto markets saw a sharp rally as a result of the announcement: XRP surged 33%, Solana surged 25%, and Cardano skyrocketed over 60%. After weeks of poor performance, Ethereum experienced a 13% gain, while Bitcoin recovered 10% to $94,343, a three-month low.

Crypto Summit & Transition From Reserve to Stockpile

On Friday, Trump will hold the first White House Crypto Summit, where business executives and investors will seek more information about the construction and upkeep of the crypto reserve.

This marks a shift in Trump’s position from supporting a Bitcoin “stockpile” to actively building a strategic reserve. He has previously suggested that the United States should keep every Bitcoin that was seized or acquired, but doing so would probably require continuing acquisitions of cryptocurrency rather than just maintaining existing holdings.

The History of the U.S. Bitcoin Reserve Concept

The concept of a Bitcoin stockpile was initially proposed by Trump during the Bitcoin 2024 conference in Nashville, which is a significant gathering for cryptocurrency aficionados. At about the same time, Senator Cynthia Lummis proposed a national strategic Bitcoin reserve, which became popular after the election.

Bitcoin reached all-time highs when the desire for government-backed reserves grew stronger after Trump’s victory in November. But when Trump released his Executive Order on Crypto in January, directing the President’s Working Group to evaluate the establishment of a digital asset stockpile, that momentum cooled. The industry was left wondering about the government’s long-term plans.

Diverse Opinions Regarding the Crypto Reserve

Some investors are excited by Trump’s intention to go beyond Bitcoin, but others are not so sure. Bitcoin maximalists contend that because of its decentralized structure and security, a reserve should only include Bitcoin. They worry that if altcoins like ADA, SOL, and XRP are included, the government may choose winners and losers in the cryptocurrency market.

Some people are completely against the concept of a government-run cryptocurrency reserve. Adam Blumberg, co-founder of Enclave Group, warns that “The next administration could liquidate the reserve to fund national expenses”. “Bitcoin was created as a decentralized asset, not something for governments to own and control.”

The cryptocurrency market’s positive response to the arguments suggests that investors are very interested in the government’s new stance on digital assets.

Bitcoin, which had been consolidating before the executive order, recently ended the worst month since 2022, but Trump’s most recent move might be a game-changer.