United States President Donald Trump has announced the five cryptocurrencies he wishes to include in the nation’s strategic crypto reserve.
Following a January Executive Order directing the US Government to ‘look into’ holding a stockpile of digital assets, the US leader declared the potential reserve would comprise of Bitcoin, Ethereum, Cardano, XRP and Solana.
The social media post heightened the buzz around Government crypto reserves, giving the crypto market a jolt following weeks of downward price movement.
In the hours following Trump’s announcement, the coins he named as candidates for the reserve jumped in value significantly.
Cardano (ADA) surged almost 65%, marking possibly the largest 24-hour gain for a top 10 cryptocurrency since 2021.
Meanwhile, Bitcoin (+8%), Ethereum (+11%), XRP (+28%) and Solana (+20%) all enjoyed strong 24-hour increases at the time of writing.
What next for the US Strategic Reserve?
To be clear, Trump’s announcement shed little light on the next steps toward the US reserve. While it demonstrated his commitment to holding crypto under the US Government banner, the answer to ‘how’ is no clearer than it was a month ago.
Many believe the most likely outcome — for now — will be the Trump administration HODLing eligible digital assets seized from law enforcement operations.
In the past, the US Government has sold Bitcoin and other cryptocurrencies confiscated from the proceeds of crime.
But speaking at a Bitcoin Conference in 2024, Trump vowed to change this policy.
“If I am elected, it will be the policy of my Administration…to keep 100% of all the Bitcoin the government currently holds or acquires into the future. We will keep a hundred per cent.”
It appears this promise will now extend to other assets, including XRP, SOL, ETH and ADA.
However, whether the national stockpile will actually buy digital assets themselves is up in the air. Earlier this year, Trump directed a Task Force to explore the legislative requirements to form a cryptocurrency reserve.
It remains to be seen whether Trump and his crypto team will need to push the reserve through the Senate to get it up and running.
What does a US strategic reserve mean for the crypto market?
Trump’s social media post unveiling the US reserve’s likely components might just be the market’s biggest news since Trump himself was elected.
The decision bookmarks the significance of not only Bitcoin, but prominent altcoins too, in the Government’s financial plans going forward.
It hammers home the importance of digital currency, blockchain technology and financial freedom to some of the biggest players in the world.
Cryptocurrency is no longer a niche.
If Trump manages to get a strategic reserve through the necessary parliamentary hurdles, it may spark a global trend. The United States is an economic powerhouse, and governments around the world could be inspired to diversify their future wealth by adding BTC and other digital assets to their portfolios.
Certainly, at a state level, the US may see an influx of local crypto reserves approved. Many individual states are already assessing the potential utility of a digital asset stockpile, and a nationwide portfolio could boost confidence.
In general, governments buying and/or holding Bitcoin likely means less BTC on the market. If global reserves increase – causing a spike in demand – it could be a recipe for big market movements in the coming years.
We’re still a little ways away from the United States launching a strategic crypto reserve. But President Trump’s announcement overnight is another step closer to this becoming reality.
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