Crypto prices surge following Trump’s strategic reserve announcement
Bitcoin and other cryptocurrencies saw a significant price increase after Donald Trump revealed plans for a U.S. cryptocurrency reserve, which he stated would include bitcoin, ether, and smaller tokens like XRP, Solana, and Cardano.
President Donald Trump enacted an executive order on Thursday to create a Strategic Bitcoin Reserve and Digital Asset Stockpile, further solidifying his administration’s support for the cryptocurrency sector.
The announcement was made ahead of a Crypto Summit Trump is set to host on Friday at the White House with industry leaders.
“It is in our country’s interest to wisely manage our national ownership of resources; we must leverage the potential of digital assets to drive our prosperity,” the executive order asserts.
The bitcoin included in the reserve will derive from assets confiscated by the U.S. Department of Treasury during legal proceedings or paid in civil penalties to federal agencies.
David Sacks, the White House cryptocurrency and artificial intelligence advisor, revealed on X that the U.S. possesses approximately 200,000 Bitcoin, noting, “A complete audit has never been carried out.” He further shared that the order mandates “a comprehensive accounting of the federal government’s digital asset inventory.”
Sacks described the Reserve as “a digital Fort Knox for cryptocurrency,” with the executive order characterizing Bitcoin as “digital gold.”
The Digital Asset Stockpile will also include assets obtained through legal seizures.
The executive order instructs the Treasury and Commerce secretaries to devise “strategies” to acquire more bitcoin that are “budget neutral and do not impose additional costs on U.S. taxpayers.”
In January, Trump signed an executive order to establish the President’s Working Group on Digital Asset Markets, directing it to explore the creation of the Reserve.
In a series of social media updates on Sunday, Trump identified five different cryptocurrencies intended for the stockpile, which caused their values to surge.
During his campaign, Trump advocated for cryptocurrencies, stating at a Bitcoin Conference in Nashville in July that he aimed to transform the U.S. into “the crypto capital of the planet and the bitcoin superpower of the world.” He pledged favorable regulations to an industry that backed his campaign.
Trump also holds financial interests in the field, having launched two cryptocurrency tokens and owning 60% of the crypto platform World Liberty Financial.
Sacks, a noted tech investor, recently shared on X that he liquidated all his cryptocurrency holdings before Trump took office.
The Biden administration has often confronted the unpredictable cryptocurrency market over regulatory matters and has taken enforcement actions against certain crypto companies.
In contrast, Trump plans to adopt a more supportive stance towards the industry. He argues that a bitcoin reserve would position the U.S. as a leader in the cryptocurrency space.
Sen. Cynthia Lummis, R-Wyo, has proposed legislation aimed at creating a bitcoin reserve. While she acknowledges concerns regarding its volatility, she believes it could aid in reducing the national debt and strengthening the U.S. dollar.
“Despite potential short-term volatility, a bitcoin reserve like this could serve as a crucial and stable store of value in the long run,” Lummis stated in a letter published in The Wall Street Journal.
Contributing: Bailey Schulz
