March 04, 2025
By Our Correspondent
One of the biggest crypto news is whether the nations would adopt cryptocurrencies as strategic reserves. The news has been gaining traction since the election of pro-crypto Donald Trump as the president. Now, Trump has made it clear that he plans to create a new U.S. strategic reserve of cryptocurrencies.
He made the announcement Sunday, sending the price of cryptocurrencies through the roof. In a post on Truth Social, Trump said that that his January executive order of digital assets would create a stockpile of currencies including Bitcoin, Ether, XRP, Solana and Cardano. This was the first time he announced this basket of cryptocurrencies. He further added an hour later: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.” After the announcement the total crypto market rose about 10%, more than $300 billion, according to CoinGecko, a crypto data firm.
XRP is cryptocurrency company Ripple Labs’ token. Ripple backed a so-called super PAC to influence congressional elections in November in favor of the crypto industry, Reuters reported.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at 21Shares, a digital assets investment management firm told Reuters. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
James Butterfill, head of research at asset manager CoinShares, told Reuters he was surprised to see digital assets other than bitcoin included in the reserve.
“Unlike bitcoin…these assets are more akin to tech investments,” Butterfill said. “The announcement suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”
