The Digital Asset Industry’s Plot Twist

The digital assets industry witnessed a major plot twist, much to the delight of investors. US President Donald Trump announced that the United States would soon establish a strategic crypto reserve featuring Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).

This declaration sent the crashing crypto market soaring, bringing back the crucial $3 trillion cumulative market cap. Its 24-hour trading volume jumped by a massive 196%, hitting the $205 billion mark. However, even if Trump signs an executive order, the US Treasury will not begin market buying BTC immediately; it still requires congressional approval.

Trump’s Crypto Reserve Plan

For the first time, a sitting US president has acknowledged XRP, Solana, and Cardano alongside Bitcoin and Ethereum. Trump posted on his Truth Social account, stating, “I will make sure the U.S. is the Crypto Capital of the World.” He mentioned that the crypto reserve would elevate the industry after years of alleged attacks by the Biden administration.

Meanwhile, creating a US strategic crypto reserve will not happen overnight. It must be accepted and passed through Congress. Parliament has to draft, debate, and pass legislation defining which digital assets are included and their weightings.

The Council will also seek funding sources to build these reserves, and agencies like the SEC, CFTC, and Treasury need to establish compliance rules.

Congress, Not Trump, Holds Crypto Reserve Power

A US strategic crypto reserve faces legislative hurdles as the creation of such stockpiles involves navigating complex legal waters. Global perspectives on cryptocurrency usage vary widely, and regulation in the US financial framework is still underdeveloped.

US financial watchdogs have eased scrutiny on digital asset-linked companies since Trump assumed the presidency. The SEC has recently dropped or closed investigations involving entities like Uniswap Labs, Coinbase, and Gemini, indicating regulators may be ready to accept crypto’s validity.

Trump mentioned creating a “crypto reserve” instead of a “stockpile,” signaling a potential win for the industry. The term “stockpile” would imply holding crypto without actively buying them, while “reserve” suggests regular purchasing like a digital gold standard.

Trump is set to host the first-ever White House Crypto Summit on March 7, 2025, where discussions on regulation and innovation in crypto are expected. However, investors will be keen to gain insights into the crypto reserve plans.

Bitcoin and the entire crypto market were in freefall last week due to an intensifying trade war. However, Trump’s announcement propelled BTC back above $94K overnight, up by 8% in the last 24 hours.

Ripple’s XRP price surged by 18% in the past 24 hours, erasing losses from the last week and trading at $2.63. Its 24-hour trading volume spiked by over 580%, reaching $21.8 billion.

Cardano became the day’s biggest gainer, with its price up by 47% after overcoming prolonged selling pressure. ADA is trading at $0.97 as of press time, with its 24-hour trading volume skyrocketing by 1800% to $10.7 billion.