President Donald Trump has given new life to the crypto market by announcing his plans to include crypto currency in his new U.S. strategic reserve. Reportedly, the crypto market surged by more than half a trillion dollars after Trump announced the names of five cryptocurrencies that would be included in the U.S. strategic reserve.
Trump, in a post to Truth Social on Sunday, said that bitcoin (BTC), ether (ETH), XRP, solana (SOL) and cardano (ADA) will be a part of the reserve, which he claimed would make the United States “the Crypto Capital of the World.”
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“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump wrote in the post.
What is the U.S. strategic reserve?
The U.S. strategic reserve refers to stockpiles of critical resources, primarily the Strategic Petroleum Reserve (SPR) and strategic mineral reserves. The SPR, the world’s largest oil reserve, stores petroleum to mitigate supply disruptions due to emergencies like geopolitical crises or natural disasters. It can hold up to 714 million barrels of oil.
Additionally, the U.S. maintains reserves of essential minerals, such as rare earth elements, to ensure national security and reduce dependence on foreign sources, particularly for defense and technology production. These reserves help stabilize the economy and maintain military readiness during times of crisis.
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Reportedly, all five cryptocurrencies jumped in value following the announcement, taking the overall crypto market cap back above $3 trillion after more than a week of losses.
“I will make sure the US is the Crypto Capital of the World… And obviously BTC and ETH, as other valuable cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum,” Trump added.