Trump tells crypto team to draft new rules, explore US stockpile
“Hello bitcoiners!” He engaged with cryptocurrency enthusiasts during his election campaign. “If crypto is set to shape the future, I want it to be mined, minted, and manufactured in the USA, and that’s going to be a reality.” Now, Donald Trump is taking action to fulfill his vision of being a “crypto president.”
WEST PALM BEACH, Florida ‒ U.S. President Donald Trump revealed the names of five digital assets he plans to incorporate into a new U.S. crypto strategic reserve on Sunday, causing a surge in the market value of each.
Trump stated on social media that his executive order from January regarding digital assets would establish a stockpile incorporating currencies such as bitcoin, ether, XRP, SOL, and ADA. These assets had not been previously disclosed.
The value of these assets increased by 8% to 62% during Sunday trading.
Trump mentioned that his order “directed the Presidential Working Group to advance a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will ensure the U.S. becomes the Crypto Capital of the World.”
Shortly after, Trump added another post: “And of course, BTC and ETH, being other significant cryptocurrencies, will be fundamental to the Reserve.”
Bitcoin, the largest cryptocurrency by market capitalization, rose approximately 8% to $90,828. Ether, the second-largest cryptocurrency, increased by 8.3% to $2,409.
The Republican president garnered support from the crypto sector in his 2024 election campaign, and has promptly worked to endorse their policy objectives. Under his Democratic predecessor, Joe Biden, regulators imposed restrictions on the industry to shield Americans from fraud and money laundering.
However, in recent weeks, cryptocurrency prices have plummeted significantly, with many prominent digital currencies losing nearly all the gains obtained after Trump’s election win sparked enthusiasm within the industry.
Experts indicate that the market requires a catalyst to rise, such as signs that the U.S. Federal Reserve intends to lower interest rates or a clearly defined pro-crypto regulatory framework from the Trump administration.
Trump is set to host the inaugural White House Crypto Summit on Friday. His family has also initiated its own cryptocurrencies.
The specifics of how the new reserve will be established or function remain unclear.
Experts and legal analysts are split on whether Congressional approval will be needed. Some suggest that the reserve could be formed through the U.S. Treasury’s Exchange Stabilization Fund, which can facilitate the buying and selling of foreign currencies.
Trump’s crypto initiative had aimed to explore potentially forming the reserve using cryptocurrencies confiscated during law enforcement efforts.
