In recent weeks, though, cryptocurrency prices are down sharply, with some of the biggest digital currencies erasing nearly all of the gains made after Trump’s election win triggered a wave of excitement across the industry.
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US President Donald Trump said on Sunday that three cryptocurrencies—XRP (Ripple), SOL (Solana), and ADA (Cardano)—will be included in a new US crypto strategic reserve, spiking their value in market trading.
In a social media post, Trump said that his January executive order on digital assets would establish a reserve featuring these currencies. Following the announcement, the value of XRP, SOL, and ADA jumped by 10% to 35% in trading, with other digital assets also experiencing gains.
Trump said his order “directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the US is the Crypto Capital of the World.
“The Republican president won support from the crypto industry in his 2024 election bid, and he has quickly moved to back their policy priorities. Under his Democratic predecessor, Joe Biden, regulators cracked down on the industry in a bid to protect Americans from fraud and money laundering.
In recent weeks, though, cryptocurrency prices are down sharply, with some of the biggest digital currencies erasing nearly all of the gains made after Trump’s election win triggered a wave of excitement across the industry.
Analysts say the market needs a reason to move higher, such as indications that the U.S. Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration.
Trump is hosting the first White House Crypto Summit on Friday. His family has also launched its own coins. It’s not clear how the new stockpile will be set up or work.
Analysts and legal experts are divided on whether an act of Congress will be necessary. Some have argued the reserve could be created via the U.S. Treasury’s Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies.
Trump’s crypto group had planned to look at potentially creating the stockpile with cryptocurrencies seized in law enforcement actions.
With inputs from agencies
