Why trust Greenbot
U.S. President Donald Trump announced plans for his “Crypto Strategic Reserve” featuring five digital currencies, sending their prices soaring but triggering skepticism about political motivations behind the selections.
In a March 2 post on Truth Social, the U.S. president revealed his January executive order would establish a reserve including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Prices jumped immediately, with Bitcoin rising 8-11%, Ethereum 9-13%, Solana 18.7%, Cardano 58.8%, and XRP 24.5%.
Source: Truth Social
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration,” Trump wrote. “I will make sure the U.S. is the Crypto Capital of the World!”
The announcement came during a difficult period for crypto markets. Bitcoin and other digital assets have recently erased most gains as investors doubt Trump’s crypto promises. Bitcoin, in particular, was previously predicted to drop to $70,000.
The news added over $300 billion to the crypto market. However, industry experts criticized Trump’s selection criteria.
Samson Mow, CEO of JAN3, criticized the inclusion of cryptocurrencies beyond Bitcoin. “If Trump can somehow just unilaterally pick random shitcoins to put into a national reserve, well, that is just very bad for the U.S.,” Mow posted on social media. “Things stop making sense. It’s now a free-for-all.”
Critics suggest the selections might reflect political calculations rather than sound economic policy. Bitcoin and Ethereum represent the two largest cryptocurrencies by market cap, while XRP, Solana, and Cardano are often highlighted as “American-made” digital assets.
XRP, ADA, and SOL are all “basically tech companies that happen to have a cryptocurrency,” Alexander Blume, CEO of Two Prime Digital Assets, told The Block. “They are very centrally controlled and ownership is also highly concentrated.”
The administration hasn’t clarified how the reserve would operate. Experts remain divided on whether Congressional approval will be necessary, with some suggesting the U.S. Treasury’s Exchange Stabilization Fund could be used to purchase the digital assets.
The reserve might initially leverage approximately 200,000 Bitcoin, valued at around $19 billion, seized through law enforcement actions. David Sacks, recently appointed as “White House AI and Crypto Czar,” will likely play a key role in implementation.
The White House plans to host its first Crypto Summit on March 8, where additional details about the strategic reserve may emerge.
