CNN
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On Sunday, U.S. President Donald Trump revealed the names of five digital assets he intends to incorporate into a new U.S. crypto strategic reserve, causing each asset’s market value to surge.
Trump announced via social media that his January executive order concerning digital assets would establish a reserve of currencies that includes bitcoin, with these names previously undisclosed.
On Sunday, the values of these assets increased between 8% and 62% during trading.
He stated, “My order directed the Presidential Working Group to advance the Crypto Strategic Reserve, which will comprise XRP, SOL, and ADA. I will ensure that the U.S. becomes the Crypto Capital of the World.”
Over an hour later, he posted again: “And, naturally, BTC and ETH, as prominent Cryptocurrencies, will be at the core of the Reserve.”
Bitcoin, the leading cryptocurrency by market capitalization, rose around 8% to $90,828, while Ether, the second-largest cryptocurrency, increased 8.3% to $2,409.
The Republican president garnered support from the cryptocurrency sector for his 2024 election campaign and has swiftly aligned with their policy agendas. In contrast, his Democratic predecessor, Joe Biden, implemented regulatory actions to safeguard Americans from fraud and money laundering in the industry.
Recently, however, cryptocurrency prices have sharply declined, with many major digital currencies wiping out nearly all the gains made following the excitement spurred by Trump’s election win.
Analysts suggest the market requires a catalyst for upward movement, such as signals that the U.S. Federal Reserve may lower interest rates or a definitive pro-crypto regulatory framework from the Trump administration.
Trump is set to host the inaugural White House Crypto Summit on Friday, and his family has also launched their own cryptocurrencies.
The specifics of how the new stockpile will be structured or function remain uncertain.
There is a divide among analysts and legal experts regarding whether legislation from Congress will be required. Some contend that the reserve could be formed using the U.S. Treasury’s Exchange Stabilization Fund, which allows the purchase or sale of foreign currencies.
It has been noted that Trump’s crypto group is exploring the potential creation of the stockpile using cryptocurrencies acquired through law enforcement actions.
