On March 2, 2025, President Donald Trump announced the creation of a U.S. strategic cryptocurrency reserve. This initiative aims to bolster the nation's position in the digital asset sector and includes five specific cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).
The announcement led to immediate surges in the values of these cryptocurrencies. For instance, XRP's value rose from $2.23 to $2.99, SOL increased from $140 to $168, and ADA nearly reached $1 from $0.68. Bitcoin experienced a 9% increase, reaching $93,000 and adding $166 billion to its market value.
The strategic reserve is part of President Trump's broader agenda to establish the U.S. as the "Crypto Capital of the World." An executive order titled "Strengthening American Leadership in Digital Financial Technology," signed in January 2025, laid the groundwork for this initiative by forming a Presidential Working Group on Digital Asset Markets to explore a national digital asset stockpile.
While the reserve's creation has been praised by some industry leaders, others express concerns about its potential risks and volatility. Critics argue that including altcoins like XRP, SOL, and ADA may expose public funds to market fluctuations, suggesting a focus solely on Bitcoin might be more prudent.
The White House plans to address these concerns and provide further details at the upcoming Crypto Summit on March 7, 2025. This event is expected to outline the reserve's implementation strategies and regulatory considerations.
