Trump Unveils US Crypto Strategic Reserve
1min read President Donald Trump announced on Sunday the creation of a "crypto strategic reserve" in the United States, which will include major cryptocurrencies such as bitcoin and ethereum. This move is part of Trump's ongoing efforts to support the cryptocurrency industry, as he has become a significant backer in recent months.
The national crypto reserve, according to Trump, aims to "elevate this critical industry after years of corrupt attacks." He directed his administration to "move forward on a Crypto Strategic Reserve" that will include cryptocurrencies XRP, solana, and ADA, in addition to bitcoin and ethereum, which he described as the "heart of the Reserve."
Trump's announcement builds on an executive order he issued on January 23, which directed his administration to create a "working group" to propose a regulatory framework on digital assets. This working group was tasked with evaluating a "national digital asset stockpile," which is now being developed into the crypto strategic reserve.
The impact of Trump's announcement on crypto prices was significant. Bitcoin prices surged more than 10% from around the time of the announcement, reaching over $94,000 early Sunday afternoon. Ethereum prices soared more than 13% from before the announcement, briefly topping $2,500 in the early afternoon. Prices for the smaller market cap coins mentioned by Trump—XRP, ADA, and solana—all spiked at least 20% shortly after his announcement.
It remains unclear what the final parameters of the crypto stockpile will look like. However, Trump's executive order suggests that the reserve could be "potentially derived" from cryptocurrency seized by the federal government through its law enforcement efforts. The New York Times reported in January that the federal government already has an estimated $19 billion in bitcoin that it has seized, which could be used to establish a stockpile. It is still uncertain whether Trump will also attempt to acquire significant amounts of new cryptocurrency to stock the reserves, which would likely require congressional approval.
