U.S. President Donald Trump made waves in the cryptocurrency market by revealing plans to establish a new U.S. crypto strategic reserve, naming five digital assets to be included: bitcoin, ether, XRP, SOL, and ADA. This announcement led to significant market value spikes for each of these assets, with trading surges ranging from 8% to 62%.

In his social media posts, Trump emphasized his executive order’s directive to create this reserve, positioning the U.S. as the “Crypto Capital of the World.” He later confirmed that bitcoin and ether would also feature prominently in the reserve. The market responded positively, with bitcoin and ether prices rising by 8% and 8.3%, respectively.

Trump’s support for the crypto industry, which backed his 2024 election campaign, contrasts sharply with the regulatory stance taken by his predecessor, Joe Biden. Recent dips in cryptocurrency prices have prompted analysts to highlight the need for positive market catalysts, such as potential interest rate cuts by the U.S. Federal Reserve or a clear pro-crypto regulatory framework under the Trump administration.

Amidst these developments, Trump is set to host the inaugural White House Crypto Summit, signaling a proactive engagement with the industry. However, details on how the crypto strategic reserve will operate remain unclear, sparking debates among analysts and legal experts on the necessity of congressional involvement and potential funding mechanisms, including leveraging the U.S. Treasury’s Exchange Stabilization Fund or utilizing seized cryptocurrencies from law enforcement actions.