WEST PALM BEACH, Florida, March 2 (Reuters) – U.S. President Donald Trump announced the inclusion of five digital assets in a proposed U.S. crypto strategic reserve on Sunday, triggering a surge in their market values. Trump revealed on social media that his January executive order on digital assets would establish a stockpile comprising bitcoin, ether, XRP, SOL, and ADA. These specific assets had not been previously disclosed. Following the announcement, the mentioned cryptocurrencies experienced price increases ranging from 8% to 62% in Sunday trading.
Trump stated that his directive tasked the Presidential Working Group to advance a Crypto Strategic Reserve that incorporates XRP, SOL, and ADA, affirming his commitment to positioning the U.S. as the global leader in cryptocurrency. Subsequently, he confirmed via another post that BTC and ETH would also be central to this reserve. Bitcoin, the leading cryptocurrency by market capitalization, rose approximately 8% to reach $90,828, while ether, the second-largest, climbed 8.3% to $2,409.
The Republican president garnered significant backing from the crypto sector during his 2024 election campaign and has since acted swiftly to support their policy agenda. This contrasts with his Democratic predecessor, Joe Biden, under whom regulators intensified scrutiny of the industry to safeguard Americans from fraud and money laundering. Despite recent enthusiasm following Trump’s election victory, cryptocurrency prices have seen a sharp decline in recent weeks, with major digital currencies nearly erasing all post-election gains. Analysts suggest that the market requires catalysts for upward movement, such as signals of potential interest rate cuts by the U.S. Federal Reserve or a definitive pro-crypto regulatory framework from the Trump administration.
Trump is convening the inaugural White House Crypto Summit on Friday, and his family has introduced their own digital coins. The operational details of the new reserve remain unclear, with analysts and legal experts debating whether congressional approval will be necessary. Some propose that the reserve could be established through the U.S. Treasury’s Exchange Stabilization Fund, which is authorized to buy or sell foreign currencies. Additionally, Trump’s crypto task force considered potentially forming the stockpile using cryptocurrencies confiscated during law enforcement operations.
— news from Reuters