President Donald Trump is expressing his support for the establishment of a federal reserve of cryptocurrency assets — he initially mentioned XRP, Solana, and Cardano for inclusion, and later added that Bitcoin and Ethereum would also be included.
In January, Trump issued an executive order calling for the formation of a working group to examine and make recommendations on crypto policy, including the possibility of creating and managing a national digital asset reserve.
The working group was tasked with proposing criteria for establishing such a reserve, potentially using cryptocurrencies seized by the Federal Government through law enforcement efforts.
In a post on his social network Truth Social, Trump indicated his desire for the reserve to become a reality.
“A U.S. Crypto Reserve will enhance this crucial industry after facing attacks from the Biden Administration,” Trump stated in his post. “That’s why I directed the Presidential Working Group to pursue a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I am committed to making the U.S. the Crypto Capital of the World.”
At the time of publication, the prices of the mentioned cryptocurrencies had increased by 20% or more. In a subsequent post, Trump added, “And, of course, BTC and ETH, along with other valuable Cryptocurrencies, will be central to the Reserve. I am also a supporter of Bitcoin and Ethereum!”
As acknowledged by Trump, his executive order appears to be aimed at reversing the crypto regulatory framework established by former President Joe Biden.
During Trump’s tenure, the Securities and Exchange Commission adopted a more lenient, deregulatory approach towards the industry, dropping its lawsuit against Coinbase and affirming that memecoins are not securities. (The value of Trump’s own $TRUMP coin has declined since his presidency.)
Additionally, Trump has signed an executive order calling for the establishment of a U.S. sovereign wealth fund that could potentially be used to acquire TikTok.
This post has been updated to include Trump’s subsequent mention of Bitcoin and Ethereum.
