Topline
President Donald Trump said Sunday the U.S. will create a “crypto strategic reserve” that includes major cryptocurrencies like bitcoin and ethereum—boosting crypto prices—the latest effort by Trump to court the cryptocurrency industry as he’s become a major crypto backer in recent months.
President Donald Trump talks with reporters before boarding Marine One on the South Lawn of the … [+]
Key Facts
A national crypto reserve will “elevate this critical industry after years of corrupt attacks” Trump said, adding he directed his administration to “move forward on a Crypto Strategic Reserve” that includes cryptocurrencies XRP, solana and ADA.
He then added a second post saying the reserve will “obviously” include bitcoin and ethereum as the “heart of the Reserve,” saying he “loves” the top two cryptocurrencies.
Trump’s announcement Sunday builds on an executive order Trump issued Jan. 23 directing his administration to create a “working group” to propose a regulatory framework on digital assets, which includes evaluating a “national digital asset stockpile.”
What Was The Impact On Crypto Prices?
Bitcoin prices shot up more than 10% from around the time of Trump’s announcement to more than $94,000 early Sunday afternoon, while ethereum prices soared more than 13% from before the announcement to briefly top $2,500 in the early afternoon. Prices for the smaller market cap coins Trump mentioned—XRP, ADA and solana—all spiked at least 20% shortly after Trump’s announcement.
What Would A ‘crypto Strategic Reserve’ Look Like?
It’s still unclear what the final parameters of any crypto stockpile would look like, but Trump’s executive order suggests the reserve would be “potentially derived” from cryptocurrency the federal government has seized “through its law enforcement efforts.” The New York Times noted in January the federal government already has an estimated $19 billion in bitcoin that it’s seized, which it could simply hang on to in order to establish a stockpile. What remains to be seen is whether Trump will also try to acquire significant amounts of new cryptocurrency to stock the reserves, which would likely boost the crypto industry and existing crypto holders—but would also likely require congressional approval, the Times notes.
Further Reading
A First-Day Trump Order: A Federal Stockpile of Bitcoin? (New York Times)
Trump Bullishness Pushes Bitcoin To 4-Week High—As Crypto Experts Push For Stockpile On Day One (New York Times)
