Key Points:
- The crypto market jumped over 10% after President Donald Trump announced a Crypto Strategic Reserve, including Bitcoin, Ether, Solana, XRP, and Cardano.
- The Trump administration has eased regulations, with more details expected at the White House Crypto Summit on Friday.
President Donald Trump’s administration has announced a U.S. Crypto Strategic Reserve, including Bitcoin and Ethereum, marking a significant policy shift that sent crypto markets surging over 10% in 24 hours.
The rally comes as many cryptocurrencies recover from losses sustained in late February. However, the specifics of the reserve’s structure, funding, and execution remain unclear.
Crypto Market Soars After Trump’s Crypto Strategic Reserve Announcement
On Sunday, Trump posted on Truth Social that his administration’s Presidential Working Group on Crypto, led by Bo Hines, has been directed to advance plans for a Crypto Strategic Reserve.
Initially, the reserve is set to include Solana (SOL), XRP, and Cardano (ADA), which experienced significant price increases after the announcement.
SOL and XRP saw gains of 19.4% and 25.4%, respectively, while ADA surged by more than 60% within a day.
Later, Trump clarified that the Crypto Strategic Reserve would also encompass Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The impact of the news was immediate, with Bitcoin rising over 8.8% to around $93,280, while Ether climbed 10.8% to $2,440 at the time of wrting.
According to blockchain analytics firm Arkham, the U.S. government currently holds approximately $18.3 billion worth of Bitcoin and $135 million in Ethereum.
Regulatory Shift and Upcoming White House Crypto Summit
While the exact structure and function of the Crypto Strategic Reserve remain uncertain, further details are expected at the upcoming White House Crypto Summit on Friday.
Under the previous Biden administration, regulators intensified oversight of the crypto sector to address fraud and money laundering concerns.
In contrast, Trump’s administration has taken steps to ease regulatory pressures, with the Securities and Exchange Commission recently halting investigations into major industry players, including Coinbase, Gemini, OpenSea, ConsenSys and Robinhood.
Shortly after taking office in January, Trump signed an executive order establishing the Presidential Working Group on Crypto, tasked with exploring new regulations and the potential formation of a national digital asset stockpile.
The order suggested that such a reserve could include cryptocurrencies lawfully seized by the federal government through enforcement actions.
Despite Trump’s favorable stance on digital assets, the crypto market has faced volatility in recent weeks, with some major tokens erasing post-election gains. However, the latest developments have rekindled investor optimism.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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