US President Donald Trump on Sunday announced five digital assets he intends to include in the country's new strategic cryptocurrency reserve, causing their market value to surge.
Trump announced on social media that his executive order, issued in January, would create a reserve of currencies that would include Bitcoin, Ethereum, XRP, SOL and ADA. The names had not previously been disclosed.
On Sunday, asset prices rose by 8–62 percent during trading.
Trump noted that his order “directed the President's Task Force to continue developing a strategic cryptocurrency reserve that includes XRP, SOL, and ADA. I will do everything in my power to ensure that the United States becomes the world's cryptocurrency hub.”
More than an hour later, Trump added another message: “And of course, BTC and ETH, as well as other valuable cryptocurrencies, will form the basis of the reserve.”
Bitcoin, the largest cryptocurrency by market capitalization, rose about 8 percent to $90,828. Ether, the second-largest cryptocurrency, rose 8.3 percent to $2,409.
The Republican president has received support from the crypto industry in his 2024 presidential campaign, and he has quickly moved to support their policy goals. Under his Democratic predecessor, Joe Biden, regulators have cracked down on the industry in an effort to protect Americans from fraud and money laundering.
However, cryptocurrency prices have fallen sharply in recent weeks, with some of the leading digital currencies virtually erasing all of their gains after Trump's election victory sparked a wave of excitement in the sector.
Analysts say the market needs a reason to rally, such as signs that the US Federal Reserve intends to cut interest rates or a clear pro-cryptocurrency regulatory framework from the Trump administration.
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Trump will host the first White House Crypto Summit on Friday. His family has also launched its own coins.
It is currently unclear how the new reserve will be structured and operated.
Analysts and legal experts are divided over whether an act of Congress is needed. Some believe the reserve could be created through the Treasury's Currency Stabilization Fund, which could be used to buy or sell foreign currencies.
Trump's cryptocurrency group planned to consider forming a reserve using cryptocurrencies seized during law enforcement
Sourse: breakingnews.ie
