Trump Names Five Cryptocurrencies for New Federal Reserve Program

TLDR

• Trump announced plans for a U.S. strategic crypto reserve including Bitcoin, Ethereum, XRP, Solana, and Cardano, causing their prices to rise between 10-60%
• Bitcoin jumped to $94,164 while Ethereum rose to $2,516 following the announcement
• Trump is hosting the first White House Crypto Summit on Friday, marking increased government engagement with crypto
• Under Trump, the SEC has withdrawn investigations into crypto companies and dropped a lawsuit against Coinbase
• Standard Chartered analyst predicts Bitcoin could reach $500,000 before Trump leaves office

President Donald Trump announced plans to create a U.S. strategic cryptocurrency reserve that will include five major digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano. The announcement came through a post on Truth Social on Sunday.

The news triggered immediate market reactions. Bitcoin rose more than 11% to $94,164, while Ethereum increased by approximately 13% to $2,516.

XRP experienced the most dramatic surge, jumping 33% after the announcement. Solana’s token increased by 25%, and Cardano’s coin rose more than 60%.

XRP Price on CoinGecko

The total cryptocurrency market added more than $300 billion in value within hours of Trump’s announcement. The surge reflects the market’s positive response to potential government involvement in the crypto sector.

Trump made the announcement through two separate posts. The first outlined the inclusion of XRP, Solana, and Cardano, while a follow-up post confirmed that Bitcoin and Ethereum would be “at the heart of the Reserve.”

The move represents a shift from Trump’s earlier stance. Last summer, he had only discussed the possibility of a Bitcoin stockpile during the Bitcoin 2024 conference in Nashville.

The administration’s approach differs from previous government positions. Under Biden’s presidency, regulators had taken a stricter stance on cryptocurrency oversight and regulation.

Market Response and Institutional Adoption

Recent changes in regulatory oversight reflect the new direction. The Securities and Exchange Commission has withdrawn several investigations into crypto companies and dropped a lawsuit against Coinbase, the largest U.S. crypto exchange.

Trump plans to host the first White House Crypto Summit on Friday. The event will likely provide more details about the administration’s plans for the strategic reserve.

Questions remain about the legal framework for establishing the reserve. Some experts suggest it could be created through the U.S. Treasury’s Exchange Stabilization Fund, which has authority to purchase foreign currencies.

The administration is considering using cryptocurrencies seized in law enforcement actions as part of the reserve. This approach could provide an initial supply of digital assets.

Market analysts have responded with varying predictions. Standard Chartered’s Geoff Kendrick projects Bitcoin could reach $500,000 before Trump leaves office.

Recent regulatory filings show increased institutional interest. Banks and sovereign wealth funds have joined hedge funds in purchasing crypto assets.

Asset managers have increased their allocations to U.S. ETFs tied to spot Bitcoin prices, according to fourth-quarter 2024 filings.

The crypto community has mixed reactions to the plan. Some argue that a government reserve should only include Bitcoin, while others oppose any government holdings of cryptocurrencies.