Crypto prices rally after Trump backs five coins for 'crypto reserve'

U.S. President Donald Trump has announced the names of five cryptocurrencies he wants to include in a new strategic reserve, aiming to make the United States the "cryptocurrency capital of the world." This move is designed to strengthen America's leadership in this emerging field and capitalize on the potential of cryptocurrencies.

Following Trump's announcement, the market prices of the five cryptocurrencies he mentioned—Bitcoin, Ethereum, Ripple (XRP), Solana, and Cardano—rose rapidly. The market reacted positively to the news, demonstrating investor optimism regarding the potential pro-cryptocurrency policies of the Trump administration.

Throughout his presidential campaign, Trump has actively sought the support of the cryptocurrency community. Former U.S. President Joe Biden had cracked down on cryptocurrencies due to concerns about fraud and money laundering. Trump's move stands in stark contrast to the Biden administration's policies, aiming to attract supporters from the cryptocurrency industry.

It is currently unclear how this new reserve will operate. Further information is expected to be released on Friday when Trump plans to host the first-ever cryptocurrency summit at the White House. This summit is expected to bring together industry leaders and policymakers to discuss the future direction of cryptocurrency development.

In a social media post on Sunday, Trump stated that he had signed an order "directing the presidential task force to advance a strategic reserve of cryptocurrencies, including Ripple, Solana, and Cardano." About an hour later, he added in another post: "Obviously, Bitcoin and Ethereum, as other valuable cryptocurrencies, will also be core to the reserve."

The three cryptocurrencies he initially mentioned rose by as much as 62% on Sunday. Bitcoin and Ethereum also rose by more than 10% respectively. These posts marked a new upward trend in cryptocurrency prices, following a significant rise and subsequent fall in prices after his election.

Shortly after taking office in January, Trump signed an executive order establishing a presidential task force responsible for proposing new cryptocurrency laws and regulations. The order called on the task force to "assess the potential for creating and maintaining a national digital asset reserve" that could use "cryptocurrencies lawfully seized by the federal government through law enforcement actions."

It remains uncertain whether creating the new national strategic reserve will require congressional legislation. Trump had previously been a critic of cryptocurrencies, telling Fox News in 2021 that Bitcoin was a "scam."

However, in recent weeks, both he and his wife, Melania Trump, have launched their own cryptocurrencies, leading to accusations that they are attempting to profit from his White House policies. These accusations have raised concerns about potential conflicts of interest and questioned whether the Trump administration's stance on cryptocurrencies is influenced by personal financial gain.