WEST PALM BEACH: US President Donald Trump on social media announced the names of five digital assets he expects to include in a new US strategic reserve of cryptocurrencies on Sunday, spiking the market value of each.
Trump said in a post on Truth Social that his January executive order on digital assets would create a stockpile of currencies including bitcoin, ether, XRP, solana and cardano. The names had not previously been announced.
More than an hour later, Trump added: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
Bitcoin, the world’s largest cryptocurrency by market value, was up more than 11 per cent at $94,164 Sunday afternoon. Ether, the second-largest cryptocurrency, was up about 13 per cent at $2,516.
The total cryptocurrency market has risen about 10 per cent, or more than $300 billion, in the hours since Trump’s announcement, according to CoinGecko, a cryptocurrency data and analysis company.
XRP is cryptocurrency company Ripple Labs’ token. Ripple backed a so-called super PAC to influence congressional elections in November in favor of the crypto industry, Reuters reported.
“This move signals a shift towards active participation in the crypto economy by the US government,” said Federico Brokate, head of US business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the US’s leadership in digital asset innovation.”
James Butterfill, head of research at asset manager CoinShares, said he was surprised to see digital assets other than bitcoin included in the reserve. “Unlike bitcoin…these assets are more akin to tech investments,” Butterfill said. “The announcement suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”
Trump won support from the crypto industry in his 2024 election bid, and he has quickly moved to back their policy priorities. He is hosting the first White House Crypto Summit on Friday, and his family has also launched its own coins.
Under his Democratic predecessor, Joe Biden, regulators cracked down on the industry in a bid to protect Americans from fraud and money laundering. Under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies and dropped a lawsuit against Coinbase, the largest crypto exchange in the US. But in recent weeks cryptocurrency prices are down sharply, with some of the biggest digital currencies erasing nearly all of the gains made after Trump’s election win triggered a wave of excitement across the industry.
