US President Donald Trump shook up the cryptocurrency world on Sunday, announcing that XRP (Ripple), SOL (Solana), and ADA (Cardano) would be included in a newly formed US Crypto Strategic Reserve. The move sent all three assets surging between 10% and 35% in market trading, reported Reuters.
Trump revealed the decision in a social media post, tying it to his January executive order on digital assets. “I will make sure the US is the Crypto Capital of the World,” he declared, adding that his directive instructed the Presidential Working Group to move forward with the reserve plan.
Trump’s crypto play: A game changer or just a market jolt?
The announcement marks a sharp policy shift from the Biden administration, which had cracked down on the crypto industry over concerns about fraud and money laundering. Trump’s 2024 campaign, in contrast, won significant backing from crypto executives, and his latest move signals that he intends to deliver on his pro-crypto promises.
While the news initially sparked a rally, broader cryptocurrency markets have struggled in recent weeks, with many digital assets erasing their post-election gains. Analysts believe a more sustained market boost will require either interest rate cuts from the Federal Reserve or a clearer regulatory framework from the Trump administration.
Unanswered questions: How will the crypto reserve work?
Despite the excitement, details about the crypto reserve remain unclear. Some experts speculate it could be funded through the US Treasury’s Exchange Stabilization Fund, which is traditionally used to manage foreign currencies. Others suggest it might involve cryptocurrencies seized in law enforcement actions.
Legal scholars are divided on whether the reserve could be established without congressional approval. Meanwhile, Trump’s inner circle is pressing ahead—his family has even launched its own cryptocurrency, and the first-ever White House Crypto Summit is set for Friday.
With the administration doubling down on its pro-crypto stance, all eyes are now on Washington to see whether Trump’s bold move is the start of a new financial era or just another short-lived market shake-up.