Trump announces Bitcoin and other cryptocurrencies will be included in upcoming ‘Crypto Strategic Reserve’
President Trump recently took to social media to announce the inclusion of certain cryptocurrencies in a Crypto Strategic Reserve that he had initiated through an executive order signed earlier this year. Among the digital currencies mentioned were Bitcoin and Ether. Trump expressed his belief that Bitcoin and Ether would play a central role in this reserve, referring to them as “the heart of the Reserve.” In the past, Trump had hinted at the establishment of such a reserve during his presidential campaign, promising attendees at a crypto conference that the US would retain its Bitcoin holdings and never sell them off.
In addition to Bitcoin and Ether, Trump identified other cryptocurrencies that would be part of the Crypto Strategic Reserve, including XRP, Solana (SOL), and Cardano (ADA). This move by President Trump signifies a shift in the attitude of the US government towards cryptocurrencies, especially under the purview of the Securities and Exchange Commission (SEC). The SEC, under Trump’s administration, has shown a more favorable stance towards cryptocurrencies, veering away from its previous cautious approach towards them. The agency has dropped various investigations and lawsuits against cryptocurrency firms that were accused of securities violations.
Ripple’s XRP was one of the cryptocurrencies mentioned by Trump in his recent posts. Notably, in a 2020 lawsuit against Ripple, a judge classified XRP as an unregistered security but only when it was sold to institutional investors. Despite the ruling, the SEC decided to appeal against this decision in October of the previous year, leading to an ongoing legal battle in this regard.
Overall, Trump’s announcement regarding the establishment of a Crypto Strategic Reserve reflects a significant development in the US government’s approach to cryptocurrencies. By including prominent digital assets like Bitcoin and Ether, as well as other cryptocurrencies, it is clear that a change in attitude towards these assets has occurred within the government. The involvement of Ripple’s XRP in this context further underscores the evolving landscape of regulatory frameworks surrounding cryptocurrency use and trading. With these decisions and developments, it is evident that the US is positioning itself strategically in the crypto space, signaling a new chapter in the relationship between the government and digital currencies.
