Trump orders US crypto reserve, shaking up markets

US President Donald Trump announced Sunday the establishment of a US Crypto Strategic Reserve, which will incorporate major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. 

“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” he said in a post on Truth Social. “I will make sure the U.S. is the Crypto Capital of the World.”

“I also love Bitcoin and Ethereum!”

Following the announcement, the cryptocurrency market experienced significant gains:

●      Bitcoin (BTC): Surged over 10%, reaching approximately $94,821, according to business-standard.com after dipping to a three month low on Friday.

●      Ethereum (ETH): Increased by 12%, trading around $2,516, according to Reuters

●      XRP: Jumped over 37%, according to Barron's

●      Solana (SOL): Rose by 23%, according to Barron's

●      Cardano (ADA): Increased by more than 68%, according to Barron's

Trump secured backing from the crypto industry during his 2024 election campaign and has swiftly acted to support their policy priorities. He is set to host the first White House Crypto Summit on Friday, while his family has also launched their digital currencies.

In contrast, his Democratic predecessor, Joe Biden, took a stricter regulatory stance, cracking down on the industry to combat fraud and money laundering. Under Trump, the Securities and Exchange Commission has rolled back investigations into several crypto firms and dropped a lawsuit against Coinbase (COIN.O), the largest U.S. crypto exchange.

However, cryptocurrency prices have sharply declined in recent weeks, with some of the most significant digital assets erasing nearly all their gains after Trump’s election victory, which initially sparked industry-wide optimism.