President Donald Trump jolted cryptocurrency markets on Sunday with a surprise announcement that the U.S. government will establish a strategic reserve of digital assets, naming bitcoin, ether, XRP, solana, and cardano as key holdings.
The declaration, made on Trump’s Truth Social account, sent crypto prices soaring, adding more than $300 billion to the total market capitalization within hours.
Bitcoin surged 11% to $94,164, while ether climbed 13% to $2,516, according to data from CoinGecko. Other named assets also saw double-digit percentage gains, as investors interpreted the move as a signal of growing institutional support for digital currencies.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at digital asset investment firm 21Shares.
“It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
A New Era for U.S. Crypto Policy
Trump’s announcement follows his January executive order on digital assets, which outlined broad plans for integrating cryptocurrencies into the financial system. The inclusion of alternative digital currencies beyond bitcoin was unexpected, reflecting what some analysts see as an evolving stance on crypto technology.
“Unlike bitcoin, which is often compared to digital gold, assets like solana and cardano function more like technology investments,” said James Butterfill, head of research at asset manager CoinShares.
“The announcement suggests a more proactive stance on fostering innovation in blockchain technology, rather than merely holding digital currencies as reserves.”
The administration has moved swiftly to align itself with the crypto industry’s policy priorities. The White House is set to host its first-ever Crypto Summit on Friday, bringing together industry executives, investors, and policymakers.
Trump’s family has also launched its own digital assets, further cementing his ties to the sector.
Regulatory Shift and Market Implications
The move marks a stark departure from the Biden administration’s approach, which prioritized investor protections and regulatory enforcement. Under Biden, the Securities and Exchange Commission (SEC) aggressively pursued enforcement actions against major crypto firms, citing fraud and money laundering concerns.
Since taking office, Trump has reversed course, directing regulators to drop lawsuits against firms like Coinbase and withdraw investigations into other key industry players.
Despite the latest rally, cryptocurrency markets have been volatile in recent weeks, with many digital assets erasing gains made after Trump’s election win. Investors say a clearer regulatory framework and potential Federal Reserve rate cuts could provide the next major catalyst for crypto markets.
“Crypto needs a fundamental driver beyond just policy support,” said Geoff Kendrick, an analyst at Standard Chartered, who predicts bitcoin could reach $500,000 before Trump leaves office.
The Reserve’s Structure and Legal Questions
The mechanics of the proposed strategic reserve remain unclear. Analysts and legal experts are divided on whether an act of Congress will be required to formalize it.
Some argue the U.S. Treasury’s Exchange Stabilization Fund, which has historically been used to manage foreign currency reserves, could be repurposed to hold digital assets. Others have suggested that the reserve could be built using cryptocurrencies seized by law enforcement agencies.
Trump’s announcement underscores a dramatic shift in how digital assets are perceived at the highest levels of government. Whether the reserve becomes a foundational piece of U.S. economic strategy or a symbolic gesture remains to be seen.
For now, the crypto market is celebrating its most significant endorsement yet from the White House.
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