President Donald Trump has announced the creation of a U.S. Strategic Crypto Reserve, which will include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This move marks a significant shift in the government's approach to digital assets and has sparked mixed reactions within the crypto community.
The announcement, made via Trump's social media platform Truth Social, emphasized his administration’s commitment to making the U.S. a global leader in cryptocurrency. According to Trump, the reserve will be managed by the Presidential Working Group on Digital Assets, which was formed following his Executive Order on Digital Assets in January.
Crypto Market Reacts Strongly
Following the announcement, cryptocurrency prices surged. Bitcoin jumped 10% to $94,343, rebounding from a recent dip below $80,000. XRP skyrocketed by 33%, while Solana (SOL) rose by 25% and Cardano (ADA) surged over 60%. Ethereum also saw a 13% gain.
This is the first time Trump has clearly differentiated between a crypto "reserve" and a "stockpile." A reserve implies active accumulation of assets, while a stockpile suggests simply holding existing government-owned crypto. The distinction has sparked debate over how the government will handle these assets long-term.
Controversy Over Government Crypto Holdings
The decision to create a crypto reserve has divided opinions. Many Bitcoin supporters argue that a national reserve should hold only Bitcoin, as it is the most decentralized and battle-tested cryptocurrency. Others believe that including multiple assets allows the government to "pick winners", potentially influencing the market unfairly.
A significant number of critics oppose any government involvement in cryptocurrency ownership, fearing that future administrations could sell off assets to cover national debt. Adam Blumberg, co-founder of Enclave Group, expressed concerns, stating:
"Crypto was designed to be decentralized. If the government holds a reserve, it gives them too much control over the industry."
Despite these concerns, the crypto market remains optimistic about increased institutional adoption and regulatory clarity following Trump's announcement.
Upcoming White House Crypto Summit
Trump also confirmed that the first White House Crypto Summit will take place this Friday. Investors are eager to hear more details about how the reserve will function, how assets will be acquired, and whether regulations on digital assets will change.
While Trump's administration sees this as a bold step toward U.S. financial innovation, the global crypto community will be closely watching how this new policy unfolds and its potential impact on the broader market.
