On March 2, President Donald Trump announced the creation of a U.S. Crypto Strategic Reserve, incorporating cryptocurrencies such as Bitcoin, Ethereum, XRP (Ripple), Solana (SOL), and Cardano (ADA). This initiative aims to position the United States as a global leader in the digital asset space.
The announcement led to immediate market reactions, with Bitcoin’s price surging over 10% to nearly $93,000. Other included cryptocurrencies also experienced significant gains: XRP increased by approximately 37%, SOL by 23%, and ADA by over 68%.
This move aligns with President Trump’s January 23, executive order titled “Strengthening American Leadership in Digital Financial Technology,” which revoked previous directives perceived as restrictive to the crypto industry. The order emphasizes supporting the responsible growth and use of digital assets and blockchain technology across all economic sectors.
In addition to establishing the Crypto Strategic Reserve, the executive order prohibits federal agencies from promoting or issuing Central Bank Digital Currencies (CBDCs). It also mandates the formation of the President’s Working Group on Digital Asset Markets, chaired by Special Advisor for AI and Crypto, David Sacks. This group is tasked with proposing a comprehensive federal regulatory framework for digital assets within 180 days.
The administration’s pro-crypto stance has led to regulatory shifts, including the Securities and Exchange Commission (SEC) closing its investigation into Robinhood without pursuing enforcement action. This reflects a more lenient approach toward cryptocurrency markets compared to previous administrations.
While the establishment of the Crypto Strategic Reserve has been welcomed by the industry, details regarding its implementation remain unclear. Analysts are divided on whether congressional approval is necessary or if the reserve can be managed through existing mechanisms like the U.S. Treasury’s Exchange Stabilization Fund.
President Trump is set to host the first White House Crypto Summit on March 7, to further discuss the administration’s digital asset strategy. The summit is expected to address regulatory frameworks, industry partnerships, and the future role of cryptocurrencies in the U.S. economy.
