Trump announces the creation of a strategic US crypto reserve
3 March 2025 09:37
On Sunday, US President Donald Trump named Ripple (XRP), Solana (SOL), Cardano (ADA), Bitcoin, and Ethereum as assets to be included in the US Strategic Cryptocurrency Reserve. He wrote about this on the social network, "Komersant Ukrainian" reports.
“A U.S. Cryptocurrency Reserve will elevate this critical industry after years of corrupt attacks by the Biden administration, which is why my Digital Assets Executive Order directed the Presidential Working Group to advance the creation of a Strategic Cryptocurrency Reserve that includes XRP, SOL, and ADA. I will ensure that the United States becomes the Cryptocurrency Capital of the World. We are making America GREAT AGAIN!”
– Trump wrote.
It is noteworthy that he did not mention Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization, in this post. He later clarified that the reserve would include these assets.
According to CoinDesk, after Trump’s initial announcement, the prices of XRP, SOL, and ADA experienced a significant increase. The price of ADA rose by more than 63% within two hours of the president’s post, while SOL increased by 23% and XRP by 32%.
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The history of the idea of a cryptocurrency reserve
Trump has been discussing the idea of a strategic cryptocurrency reserve since his 2024 presidential campaign. Shortly after taking office in January, he signed an executive order that instructed a working group to assess the formation of a strategic cryptocurrency reserve, but the order did not explicitly commit the United States to creating one immediately.
The order stated that the Digital Assets Working Group should “evaluate the potential establishment and maintenance of a national digital asset reserve.” On Sunday, Trump said the group should “move forward” with the formal creation of the reserve. The working group will hold a summit on Friday with representatives of the crypto industry and the government.
Senator Cynthia Lummis previously introduced a bill to create a strategic bitcoin reserve for the United States. She first spoke in favor of this at the Bitcoin Nashville conference in July, where then-candidate Trump also spoke. The bill proposed by Lummis would authorize the US Treasury Department to purchase one million bitcoins over five years, which is equal to about 5% of the total bitcoin supply.
A number of US state legislatures have already introduced bills to create their own strategic cryptocurrency reserves, although most of these initiatives have failed to develop.
David Sachs, the White House’s cryptocurrency and artificial intelligence advisor, is a limited partner at Multicoin Capital, which has invested in Solana, a blockchain ecosystem focused on providing low fees and fast transactions. Sachs said in an interview in 2021 that he was “hawking” SOL, the blockchain’s native token, although he noted in a post on X late Sunday that he had sold all of his cryptocurrency assets “before the administration started.” TRUMP, the president’s memecoin, is also built on Solana.
Sachs wrote in X that Trump’s announcement is “consistent with his Week One Executive Order” shortly after Trump’s posts.
Meanwhile, Ripple is in the middle of a years-long legal battle with the U.S. Securities and Exchange Commission, which accused the company of selling XRP – the native token of the XRP Ledger blockchain backed by Ripple – as an unregistered security during Trump’s first term. In recent months, Ripple has sought to raise its profile in Washington, D.C., including by making significant contributions to Fairshake, a crypto industry superpac, as well as to Trump’s 2025 inaugural fund.
What is a cryptocurrency?
Cryptocurrencies are digital or virtual currencies that use cryptography to secure and verify transactions and to control the creation of new currency units. Unlike traditional fiat money, cryptocurrencies operate on the basis of blockchain technology, a distributed ledger that ensures transparency, security, and decentralization. Bitcoin, created in 2009 by a person or group of persons under the pseudonym Satoshi Nakamoto, became the first and most famous cryptocurrency, after which thousands of alternative cryptocurrencies (altcoins) with different functions and purposes appeared.
The main characteristics of cryptocurrencies are
- decentralization, which allows them to function without a central control body;
- pseudo-anonymity, which ensures a certain level of user privacy;
- limited issue of many cryptocurrencies, which creates a shortage and potentially affects their value;
- global availability, which allows transactions between any network participants regardless of their geographical location.
Cryptocurrencies are used for a variety of purposes, including investment, international transfers, payment for goods and services, and as a tool for accessing decentralized applications and services.
The cryptocurrency market is characterized by high volatility, which makes it attractive for speculative investments, but at the same time risky for long-term investments. Regulation of cryptocurrencies differs from country to country, ranging from a complete ban to official recognition and integration into national financial systems. The development of blockchain technology and cryptocurrencies continues, with new projects emerging that focus on improving scalability, energy efficiency, privacy, and integration with traditional financial systems, potentially leading to wider acceptance of cryptocurrencies in the future as an alternative or complement to traditional financial instruments.
