In March 2025, former President Donald Trump announced a proposal to establish a U.S. Crypto Strategic Reserve, aiming to position the United States as the "crypto capital of the world." This initiative involves the government holding a diversified portfolio of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and Ripple (XRP).
Details of the Proposal
The concept of a national cryptocurrency reserve emerged from an executive order signed in January 2025, titled "Strengthening American Leadership in Digital Financial Technology." This order established the Presidential Working Group on Digital Asset Markets, tasked with exploring the creation of a digital asset stockpile. Initially, the focus was on utilizing seized cryptocurrencies; however, the recent announcement specifies the inclusion of major cryptocurrencies like BTC, ETH, SOL, ADA, and XRP.
Photo of Trump on crypto conference
Market Reaction
Following the announcement, there was a notable surge in the prices of the mentioned cryptocurrencies. For instance, XRP saw an increase of over 35%, while Cardano experienced a jump of more than 60%. However, these gains were temporary, as the market experienced declines in the subsequent days, influenced by broader asset class sell-offs.
Industry Perspectives
The proposal has elicited mixed reactions from industry experts. Some question the strategic relevance of including altcoins like Solana, Cardano, and Ripple compared to more established cryptocurrencies such as Bitcoin. The selection criteria for these assets remain a topic of debate, with suggestions that market capitalization may have influenced the choices rather than intrinsic strategic value.
Implementation and Future Outlook
The Presidential Working Group on Digital Asset Markets, chaired by the White House AI & Crypto Czar David Sacks, is expected to provide recommendations on the implementation of the Crypto Strategic Reserve by July 2025. This initiative represents a significant shift in U.S. policy towards digital assets, reflecting a broader acceptance and integration of cryptocurrencies into national economic strategies.