Cryptocurrency Prices surged Sunday, after Trump (R) Heralded the Creation of a U.S. National “Reserve” for a variety of Cryptocurrencies, from Bitcoin to lesser-known Digital Tokens. On His Truth Social Platform, Trump said a “Crypto Strategic Reserve” would help ensure the U.S. is the Crypto Capital of the World.”
That Post Highlighted several lesser-known Digital Tokens that would be part of the Reserve, including Solana, Cardano, and XRP, a Token associated with Ripple. In a Second Post, Trump added that “obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve,” referring to Bitcoin as the Largest and Oldest Cryptocurrency and Ether, the Token used on the Ethereum Network.
Bitcoin rose about 10% to about $94,000 per Coin as of late Sunday afternoon. XRP jumped about 32%. Solana, the underlying Blockchain Platform for what are known as Meme Ccoins, including Trump's official $TRUMP Token, rose 26%. The Trump Coin was up more than 34%.
Crypto Prices can Fluctuate wildly, which could put Taxpayer Dollars at Risk, if the Government acquires Bitcoin and other Tokens for a Reserve and their Values ultimately Fall. Economists and Fiscal Experts say a Strategic Reserve would Primarily benefit existing Bitcoin Owners, who could Profit immensely if Trump’s Actions Boost Prices and they then Opt to Sell.
Jason Furman, a former Economic Adviser to President Obama (D), was among the Skeptics who Criticized the Idea. “Torn as to whether this is more dumb or more corrupt,” He said on X. Crypto Advocates have Dismissed those Concerns as they Rally behind Trump, who aggressively courted their support throughout the 2024 Election by Promising to introduce Industry-Friendly Policies.
Many Crypto Leaders have touted what they say would be Fiscal Benefits of a New Federal Crypto Cache, claiming, for example, that the Projected Rise in Bitcoin Prices could Help the Federal Government Pay Down its Debt. The Industry, which complained of Uunfair Treatment by former Securities and Exchange Commission Chairman Gary Gensler, is also eager to Cement its Influence in Politics and the Mainstream Financial system.
It has already Scored some Early Wins since Trump took Office, including an Executive Order by Trump directing a Working Group to Study and Propose Changes to Crypto Regulations. The Order also outlines the possible Formation of a Strategic Government Reserve of Cryptocurrencies within 180 days.
On the Legal front, the SEC recently asked a Federal Court to Pause ongoing Litigation against Binance, the World’s Largest Cryptocurrency Exchange, because the Agency’s Leadership is Rethinking previous Enforcement actions. Coinbase, another Crypto Exchange, said the SEC Dismissed a Case against it, pending Commission Approval. The Decision was Not Confirmed by the SEC.
Meanwhile, David Sacks, the White House’s Czar for Crypto and Artificial Intelligence (AI), posted on X on Sunday, that more Details about the Reserve would come at a Friday Crypto summit, which the White House has said will include “prominent founders, CEOs, and Investors from the Crypto Industry.”
The U.S. Government already Possesses some Bitcoin as part of a Trove of Cryptocurrencies largely Acquired by Federal Law Enforcement from Past Criminal Probes and Asset Seizures. In Total, these Holdings are valued around $19 billion, according to Arkham Intelligence, a Crypto Tracking Firm. But the U.S. doesn’t have a Reserve of Digital Assets. Instead, it holds Foreign Currencies and Gold, while Managing Emergency Stockpiles of Medical Equipment and Critical Resources, such as Oil, which it Periodically Releases to try to Lower the Price of Gasoline.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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