U.S. President Donald Trump has made headlines by announcing a proposal to establish a national strategic reserve comprising five prominent cryptocurrencies: Bitcoin, Ethereum, XRP, Solana, and Cardano. This unexpected pivot comes as a surprise, especially considering Trump's previous stance on cryptocurrencies, where he labeled Bitcoin a "scam" in 2021.
The announcement, which Trump shared via social media, has already impacted the market. Prices for the three leading coins—Bitcoin, Ethereum, and XRP—surged by as much as 62% following the news. The sudden rally reflects heightened investor enthusiasm and the potential for greater governmental acceptance of digital currencies.
Trump’s new initiative appears to be part of a broader strategy. He recently signed an executive order in January, calling for the formation of a Presidential Working Group to explore regulations surrounding cryptocurrencies. The group is tasked with evaluating the feasibility of a national digital asset stockpile that could potentially utilize "cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts."
In a statement regarding his latest proposal, Trump said he "directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA." He further emphasized that "BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve."
Despite the excitement surrounding his announcement, questions linger about the legal implications of creating such a stockpile. It remains uncertain if establishing a national strategic reserve would necessitate an act of Congress. Critics have raised concerns that Trump may be attempting to profit from his White House policies, especially since both he and his wife Melania have launched their own cryptocurrencies.
This announcement marks a stark contrast to the previous administration under President Joe Biden, who had implemented measures aimed at cracking down on cryptocurrencies due to fears about fraud and money laundering. Trump's upcoming plans include hosting the first Crypto Summit at the White House on Friday, where he is expected to elaborate on his cryptocurrency vision.