United States President Donald Trump has proposed plans to create a national strategic crypto reserve, marking a dramatic change in the nation’s policy towards cryptocurrency. The move, disclosed through a statement on Trump’s Truth Social, will put the US at the forefront of global digital assets, underscoring his administration’s support for the crypto sector.
What Is the US Crypto Reserve?
The reserve is said to comprise five prominent cryptocurrencies, though the details are few. The effort is being spearheaded by a crypto working group established shortly after Trump took office in January, as per his announcement. The group has been charged with establishing the framework of the reserve, keeping promises made during the campaign to crypto enthusiasts.
Which Cryptocurrencies Will Be Included?
Trump’s first post mentioned XRP, Cardano, and Solana as being in the reserve. But in a subsequent statement, he clarified that Bitcoin (BTC) and Ethereum (ETH), the two biggest cryptocurrencies, will be at the center of the effort.
The move was felt in crypto markets immediately, with Bitcoin and Ethereum gaining more than 10%, Cardano, Solana, and XRP jumping 12% to 60%. The action follows a period of stagnation in the market, and most investors view the reserve as a likely long-term growth catalyst.
A Reversal in US Crypto Policy
The establishment of a national crypto reserve is a stark deviation from the US policies in the past. Regulators under the Biden administration suppressed cryptocurrency by warning of fraud and financial instability. Trump himself was also a crypto skeptic in the past, previously referring to Bitcoin as a “scam” in his first term.
But his position has since shifted. Trump denounced Biden-era policies as “corrupt attacks” on the industry. In his release, he vowed that his administration would be pro-cryptocurrency innovation, saying:
“I will make sure the US is the crypto capital of the world. We are making America great again.”
What’s Next?
The announcement precedes the first-ever White House Crypto Summit on Friday, during which additional information regarding the reserve and regulations could be unveiled. Elon Musk, a public supporter of crypto and a major player in Trump’s efforts to make government more efficient, will likely have an influence on policy.
As the crypto market responds to this historic ruling, investors and policymakers alike will eagerly observe how the US government incorporates digital assets into its overall financial strategy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult certified financial professionals before making investment decisions.