By The Epoch Times | Created at 2025-03-03 23:48:43 | Updated at 2025-03-04 05:01:04
6 hours ago
More details about the reserve are expected to be revealed at White House’s Crypto Summit on March 7.
President Donald Trump has announced a plan to establish the first U.S. Strategic Cryptocurrency Reserve (SCR), sending prices for all five of his named digital assets surging.
“I will make sure the U.S. is the Crypto Capital of the World,” Trump declared on Truth Social on March 2, crediting his January executive order on digital assets as the foundation for the new reserve.
He said the SCR would include popular cryptocurrencies such as Bitcoin and Ethereum, as well as lesser-known assets such as XRP, Solana’s SOL, and Cardano’s ADA.
The market responded swiftly to the announcement. Bitcoin jumped 10 percent to more than $94,300, rebounding from a three-month low of less than $80,000 two days prior. By midday on March 3, Bitcoin had pulled back but remained above $90,000, while the other four cryptocurrencies also saw gains before experiencing minor corrections.
Eric Trump, the president’s son, praised the announcement’s timing, calling it “genius” for being made on a Sunday when traditional markets were closed.
“For the first time, retail investors win,” he wrote on the social media platform X.
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The move drew mixed reactions from the financial and crypto communities. Some argued that such a reserve should exclusively hold Bitcoin, given its status as the most established digital asset. Others worry that government ownership of cryptocurrencies could lead to excessive market influence and regulatory overreach.
“Just Bitcoin would probably be the best option—simplest and clear story as successor to gold,” Brian Armstrong, billionaire co-founder of Coinbase, the country’s largest exchange, wrote on X.
Anthony Pompliano, founder and CEO of Professional Capital Management, appeared to share this view.
“Other countries outside the United States are focused on acquiring bitcoin,” he wrote on X. “They don’t see any altcoins having national importance.”
Palantir co-founder Joe Lonsdale took a harsher stance, saying that it is “not the proper, principled role of government” to buy crypto at all.
“It’s wrong to steal my money for left-wing grift; it’s also wrong to tax me for crypto bro schemes,” he said.
The Trump administration has yet to release specifics on how the reserve will function. Some see parallels between the SCR and the Strategic Petroleum Reserve, which serves as the nation’s emergency oil stockpile to safeguard the economy and national security during major supply disruptions.
In January, Trump formed a working group on digital assets, naming venture capitalist and former PayPal executive David Sacks as its chair. His executive order directed the group to explore the creation of a national digital asset stockpile, which could include cryptocurrencies lawfully seized through federal law enforcement efforts.
David Sacks has indicated that additional details about the reserve will be revealed at the first-ever White House Crypto Summit on March 7.
Trump’s stance on cryptocurrency has shifted dramatically over the years. In 2019, he dismissed Bitcoin and other digital assets as “not money,” saying their values are “highly volatile” and “based on thin air” while warning that unregulated crypto could “facilitate unlawful behavior, including drug trade and other illegal activity.”
Trump embraced the cryptocurrency community as he campaigned for his presidential rematch against Joe Biden. Biden’s four years in the White House saw the regulatory regime tighten its grip on crypto trade, citing concerns over fraud and money laundering.
Since Trump’s return to office, the Securities and Exchange Commission has eased its approach and dropped investigations into several major crypto firms, including the dismissal of a 2023 lawsuit against Coinbase for allegedly acting as an unregistered broker.
