President Donald Trump is throwing his support behind the idea of creating a federal reserve of cryptocurrency assets — he specifically mentioned XRP, Solana, and Cardano, but not Bitcoin or Ethereum.
In January, Trump issued an executive order calling for the formation of a working group that would study and make recommendations around crypto policy, including “the potential creation and maintenance of a national digital asset stockpile.”
The working group was supposed to “propose criteria for establishing such a stockpile,” which could be “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”
In a post this morning on his social network Truth Social, Trump seemed to go further, making it clear that he wants to see the reserve become a reality.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump wrote. “I will make sure the U.S. is the Crypto Capital of the World.”
As of publication time Sunday morning, the prices of all three of the cryptocurrencies mentioned in Trump’s post have shot up by 20% or more.
As Trump acknowledged in his post, his executive order seemed directed at undoing the crypto regulatory framework put in place by former President Joe Biden.
Under the Trump administration, the Securities and Exchange Commission seems to be taking a friendlier, deregulatory stance towards the industry, dismissing its lawsuit against Coinbase and declaring that memecoins are not securities. (The value of Trump’s own $TRUMP coin has plummeted since his inauguration.)
Trump has also signed an executive order calling for the creation of a U.S. sovereign wealth fund that he said could be used to purchase TikTok.