In what could be a major move for digital assets in the United States, President Donald Trump officially announced on Sunday the establishment of a “Crypto Strategic Reserve.”
The ‘Crypto Capital Of The World’
This initiative, outlined in his recent executive order on digital assets, aims to include cryptocurrencies such as XRP, Solana (SOL), and Cardano (ADA).
In his March 2 post, Trump stated: “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.” He expressed his determination to position the US as the “Crypto Capital of the World,” reaffirming a campaign promise that has been a cornerstone of his 2024 presidential platform.
This announcement follows Trump’s earlier executive order titled “Strengthening American Leadership in Digital Financial Technology,” signed on January 23, which outlined his administration’s support for blockchain technology and digital assets.
While the executive order called for the exploration of stablecoins backed by the US dollar and explicitly banned the introduction of a central bank digital currency (CBDC), it did not create a formal US Crypto Reserve.
Instead, it directed further study on the feasibility of such a reserve, indicating that the concept has been part of Trump’s ongoing discussions since launching his presidential campaign.
Lummis Champions Bitcoin Reserve
While Trump’s proposal focuses on the inclusion of XRP, SOL, and ADA in the proposed reserve, some lawmakers advocate for a Bitcoin-centric approach.
Senator Cynthia Lummis, a Republican from Wyoming, has been a vocal supporter of establishing a national strategic Bitcoin stockpile. She has introduced a bill calling for the US to acquire 1 million Bitcoin as part of this initiative.
At a recent conference hosted by crypto personality Anthony Pompliano, Lummis acknowledged the slow progress of her proposal, suggesting that it is more likely for a state to implement a Bitcoin strategic reserve before the federal government does.
“States are incubators of innovation,” she remarked, highlighting the potential for state governments to take the lead in cryptocurrency adoption.
The daily chart shows XRP’s price surge on Sunday following Trump’s announcement. Source: XRPUSDT on TradingView.com
At the time of writing, XRP, SOL, and ADA have all seen significant upward movement following Trump’s post. XRP, for example, is trading at $2.88, up nearly 30% in the last hour. Solana has followed a similar surge, with a 20% gain in the last hour, pushing the altcoin above the $170 level.
However, Cardano has been the top gainer in the same time frame, with a 52% surge that has sent its price skyrocketing near the $1 mark. Currently, ADA is trading at $0.98.
Featured image from BBC, chart from TradingView.com
