US President Donald Trump has announced plans to create a “Crypto Strategic Reserve” fund, which would include several lesser-known cryptocurrencies such as XRP, solana, and cardano. The move is seen as an attempt by Trump to tap into the popularity of cryptocurrency prices as a barometer of his public support.
Trump’s announcement came after recent sell-offs in crypto markets, with Bitcoin briefly surging to around $95,000 before falling back. Other cryptocurrencies such as XRP, solana, and cardano also saw significant price increases after the announcement.
However, critics argue that holding cryptocurrencies as a reserve asset is not a suitable choice due to their high volatility. Advocates, on the other hand, see it as an opportunity to diversify government holdings and hedge against financial risks.
The inclusion of non-bitcoin cryptocurrencies in the reserve fund is likely to face opposition from some corners of the cryptocurrency industry, which has been divided over Trump’s stance on crypto. The White House has not provided further details on how much each type of cryptocurrency will be held or how the government plans to acquire them.
Trump’s administration has taken several steps to boost the crypto industry since taking office, including ending enforcement actions by the Securities and Exchange Commission. However, prices have fallen since Trump’s inauguration, leading some to question his commitment to the industry.
The announcement is seen as a strategic move to shore up support for Trump among cryptocurrency enthusiasts, who had invested heavily in his campaign. The White House plans to host a “Crypto Summit” later this week, which will bring together industry leaders and experts to discuss the future of crypto.
Source: https://apnews.com/article/trump-crypto-bitcoin-digital-assets-reserve-2f4246434a657f248cd85296f14382f9