Trump Proposes U.S. Crypto Reserve, Sparking Global Fintech Race
1min read In a surprising development, a tweet attributed to former U.S. President Donald J. Trump has emerged, suggesting the creation of a "U.S. Crypto Reserve" that would include several prominent digital assets such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). According to the tweet, Trump's executive order on digital assets would direct a new Presidential Working Group to move forward with this crypto-focused strategic reserve, positioning the U.S. as "the Crypto Capital of the World."
Trump's tweet comes amidst a broader trend of U.S. states exploring the possibility of building BTC treasuries. Recent data indicates that if just 20 U.S. states adopted Bitcoin reserves, it could drive a $23 billion inflow into BTC, potentially bolstering state and municipal balance sheets. While not all states have taken the plunge, increased crypto-friendly legislation is gradually cropping up across the country, pointing toward an appetite for digital assets as a hedge or growth strategy.
If implemented, a federal crypto reserve could have several significant impacts. Firstly, it could strengthen U.S. financial clout by positioning the country at the forefront of digital asset policy and innovation. With countries like el Salvador adopting BTC as legal tender and several global financial centers exploring central bank digital currencies (CBDCs), a U.S. reserve might accelerate national efforts to remain a leader in fintech.
Secondly, a U.S. government embrace of a basket of crypto assets could reshape ongoing global regulatory debates. The combination of BTC, ETH, XRP, SOL, and ADA indicates a broad approach, pulling in both proof-of-work and proof-of-stake networks as well as key layer-1 protocols used for various DeFi and NFT applications.
Lastly, a large-scale entrance of U.S. federal funds into top digital assets could significantly expand market liquidity. In turn, mainstream investors, businesses, and financial institutions might be incentivized to integrate crypto solutions into their operations.
However, some observers remain doubtful about the feasibility of Trump's proposal, noting that his current statements have yet to be backed by formal policy actions. It remains unclear how a "Presidential Working Group" would form and function, especially considering ongoing debates in Congress around stablecoins, spot Bitcoin ETFs, and the role of federal agencies like the SEC and CFTC 