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Trump’s U.S. Crypto Reserve Sparks Market Surge, Debate
Crypto | March 3, 2025
Image: Freepik
Reactions Pour In as U.S. Moves Toward Crypto Reserve
On March 2, 2025, U.S. President Trump shook the financial world by announcing on Truth Social that the digital assets executive order signed in January directing the presidential working group to investigate a U.S. bitcoin reserve will now move forward with a strategic U.S. crypto reserve that includes XRP, SOL, ADA, BTC, and ETH. The initial post excluded BTC and ETH but in a follow-up post Trump added the inclusion of the two largest cryptocurrencies globally.
Within hours of the announcement, crypto prices soared with Bitcoin jumping over 12% reaching $94.5k, Ethereum climbing 10%, XRP over 30%, Solana and Cardano catapulting 14% and 47% respectively. Public stocks tied to crypto jumped too such as Coinbase and Marathon Digital, as investors rushed to capitalize on the bullish news. However, volatility remains high given that the mechanics of the reserve are still unclear. Additional details are expected on this Friday's Crypto Summit at the White House to take place this Friday, March 7, 2025 as announced by U.S. crypto czar David Sacks on X.
See: Vancouver’s Bitcoin Vision: A New Era for City Finances
President Trump on Truth Social:
“A U.S. 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 posted to his Truth Social account, referring to Ripple’s XRP, solana and cardano and without mentioning bitcoin.
“I will make sure the U.S. is the crypto capital of the world. We are making America great again.”
“Obviously, bitcoin and ethereum, other valuable cryptocurrencies, will be the heart of the reserve. I also love bitcoin and ethereum.”
Market Reactions
1. Bitcoin Maximalists and Advocates Divided
Hunter Horsley BitWise CEO criticized the inclusion of multiple cryptocurrencies in the reserve saying, "Bitcoin alone should be the standard. By adding altcoins, the reserve risks becoming speculative rather than a stable asset". While Ripple/XRPs CEO Brad Garlinghouse, naturally applauded the diversified approach arguing that a mutli-chain future is inevitable.
See: SEC Policy Reversals and Crypto Case Dismissals
Bitcoin advocate, Anthony Pompliano (Pomp) also criticized the reserve’s altcoin holdings as it strays from Bitcoin’s role as “hard money”. He argued that the U.S. government shouldn't be speculating on technology assets which he equates crypto holdings like ETH, SOL, XRP, and ADA to, compared to strategic reserves like gold or oil.
2. Political Stunt or Financial Revolution?
Former U.S. Treasury Secretary Janet Yellen expressed skepticism, stating that the decision lacks clear regulatory backing, warning, "While digital assets have their place, tying them to a national reserve without a defined framework could lead to regulatory headaches and instability in traditional markets."
3. Traditional Finance Sees It as a Threat
Warren Buffett, Berkshire Hathaway CEO called the move an "act of war" against traditional financial systems. "Crypto remains a speculative asset, and tying it to a national reserve could create economic instability in ways we haven't seen before".
4. Brian Armstrong on Institutional Adoption
Coinbase CEO Brian Armstrong reacted enthusiastically, stating on X that this move will force financial institutions to integrate digital assets. "Crypto is no longer a fringe asset class—governments are now recognizing its strategic importance". However, he also warned that regulatory clarity must accompany the initiative.
5. A Race for Global Crypto
El Salvador’s President Nayib Bukele who made Bitcoin legal tender in his country hailed the announcement. However, to secure a $1.4 billion loan from the International Monetary Fund, his administration had to adjust its Bitcoin policies, amending its Bitcoin Law to make acceptance voluntary, no longer accepting tax payments in Bitcoin, and restricting public sector involvement in cryptocurrency activities.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
These concessions reflect a balance between maintaining Bitcoin’s role in El Salvador’s economy while addressing the IMF’s financial stability concerns. "This is validation at the highest level. If the U.S. moves forward with this seriously, expect other nations to follow suit," he said. Meanwhile, the Czech National Bank announced it is studying Bitcoin's feasibility as a reserve asset.
Conclusion
The U.S. Crypto Reserve could accelerate digital asset adoption and alter financial regulations but there are a lot of details outstanding and it would require congressional approval. The world is no doubt watching.
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