US President Donald Trump has signed an executive order, resulting in the formation of a national cryptocurrency reserve, with major cryptos XRP, Solana, and Cardano being the first assets included. In addition to this, the likes of Bitcoin and Ethereum will be added to the reserve as well. Trump made the announcement in a post on Truth Social.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!” Trump wrote in his post.
Following the announcement, cryptocurrency prices increased sharply as the inclusion of these assets in a government reserve was widely seen as a recognition of their legitimacy.. Bitcoin surpassed the $93,000-mark, marking an overall growth of 8.68% (the crypto is currently $92,767.25). Ethereum climbed by 10.71% to reach $2,448.82. Among the cryptocurrencies in the reserve, XRP recorded the largest increase, rising by 24.89% to $2.81. Solana saw a 19.34% jump to $170.87, while Cardano surged by 60.05% to reach $1.075 as well.
The details regarding this upcoming crypto reserve are yet to be revealed, creating uncertainties as to how it will be managed. Some of the concerns include how the assets will be stored, whether the government will intervene in market fluctuations, and what impact this decision will have on existing financial regulations. The inclusion of XRP is particularly notable, given its ongoing legal dispute with the Securities and Exchange Commission (SEC). For those who missed it, the case centered on whether XRP should be classified as a security, and blockchain developer Ripple was accused of selling the crypto in an unregistered security offering.
Still, Trump’s announcement marks a shift from previous administrations, which focused on regulating cryptocurrencies rather than integrating them into federal reserves. The Biden administration, for instance, supported stricter oversight of the industry – in this vein, Biden even signed an executive order that addressed the lack of a suitable framework for developing cryptocurrency in the country. Trump has been a supporter of the cryptocurrency industry, on the other hand, and from the looks of it, his administration now prefers decentralized assets over a government-controlled digital currency.
In addition to the crypto reserve, the Trump administration is expected to announce tariffs on goods from Canada, Mexico, and China (which further adds to the volatility in the market). “There are going to be tariffs on Tuesday on Mexico and Canada,” Howard Lutnick, United States Secretary of Commerce, commented on the matter. “Exactly what they are, we’re going to leave that for the president and his team to negotiate.” Last month, Trump proposed a tariff of 25% on all imports from Mexico and most imports from Canada, as well as another 10% on imports from China.
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