Trump Proposes U.S. Crypto Reserve: A Path to Regulatory Acceptance?

President Donald Trump has unveiled plans to establish a U.S. Crypto Reserve, including major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (Ripple), and Cardano (ADA). Following an executive order on digital assets, his decision has sparked a massive surge in the crypto market. Investors see this move as a potential step toward regulatory clarity in the U.S.

Trump’s Shift from Bitcoin-Only to a Broader Crypto Stockpile

At the Bitcoin 2024 conference in Nashville, Trump initially discussed creating a Bitcoin reserve. However, his stance evolved after signing an executive order on January 23. He directed the Presidential Working Group on Digital Assets to explore a more inclusive crypto reserve, expanding beyond Bitcoin to include Ethereum, XRP, Solana, and Cardano.

Trump emphasized his commitment to strengthening the U.S. crypto industry while responding to what he called “corrupt attacks” by the Biden administration. He stated, “A U.S. Crypto Reserve will help this industry grow and ensure that America stays at the forefront of digital assets.”

Crypto Market Reacts: Prices Surge on Trump’s Announcement

Trump’s proposal triggered a crypto market rally, with the global market cap soaring 8.73% to $3.08 trillion. Trading volumes skyrocketed 154.30% to $189.38 billion, reflecting heightened investor enthusiasm.

How Major Cryptocurrencies Responded

XRP surged over 24.14% to $2.94, with a 507.23% spike in trading volume.
Solana jumped over 18.19% to $177.38, with volume rising 409.88%.
Cardano soared over 59.10% to $1.13, marking a 1,612.28% volume increase.
Bitcoin climbed over 8.35% to $94,810.72, continuing its volatile trend.
Ethereum gained 9.57% to $2,541.07, with volume up 152.48%.

While this surge excited investors, analysts caution that long-term stability depends on clearer regulations and potential Federal Reserve interest rate cuts.

Experts and Industry Leaders Offer Mixed Reactions

The crypto community welcomed Trump’s initiative, but industry experts expressed diverging opinions.

Alex Xu, research partner at Mint Ventures, warned that including XRP, SOL, and ADA could weaken a Bitcoin-focused reserve, making federal approval more difficult.
Veteran economist Peter Schiff criticized the move, questioning the necessity of XRP: “Why the hell would we need that?”
Ripple CEO Brad Garlinghouse praised the decision, calling it a “victory for crypto unity” and confirming his attendance at the White House Crypto Summit on March 7.

Regulatory Challenges: Will the U.S. Crypto Reserve Become Reality?

A major question remains: How will the U.S. Crypto Reserve operate?

Analysts speculate the reserve could involve:

Assets seized by law enforcement, similar to existing government-held Bitcoin.
Backing from the U.S. Treasury’s Exchange Stabilization Fund.

Legal experts are also debating whether Trump’s proposal requires Congressional approval. As his administration engages with industry leaders, the upcoming White House Crypto Summit on March 7 could clarify regulatory policies and crypto’s future in the U.S.

A New Era for Crypto Under Trump?

Trump’s pro-crypto stance marks a sharp departure from Biden’s regulatory approach. His efforts could pave the way for broader crypto adoption and legitimacy. However, whether this shift ensures long-term stability or triggers another market shake-up remains uncertain.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.