U.S. President Announces Next Steps for Crypto Strategic Reserve

On March 2 2025, President Donald Trump announced plans to move forward on the "strategic crypto reserve" including Bitcoin, Ethereum, XRP, Solana, and Cardano's ADA.

Blockchain has been a speculative market with most investor motivation stemming from distrust in centralized banking systems and belief in potential of decentralized applications, smart contracts, supply chain transparency, and exponential value increase. With the new U.S. administration vying to make the U.S. the "Crypto Capital of the World", the technology has renewed potential to become a highly valuable asset for future monetary exchange.

Since the announcement, the listed strategic crypto reserve coins have surged in value (as of March 2, 8 pm EST):

Source: Kraken Cryptocurrency Exchange (March 2, 2025, 8 pm EST)

BTC/USD: $93,324.40 +8.46%

ETH/USD: $2,468.89 +11.47%

SOL/USD: $174.95 +20.68%

XRP/USD: $2.87 +31.06%

ADA/USD: $1.08 +65.21%

For the past four years, former President, Joe Biden, enacted various regulatory measures on cryptocurrencies, such as anti-money laundering rules, that stifled the technology's progression while the government explored the potential of digital assets in balance with regulation. With the turn of office in 2025, President Donald Trump quickly passed an executive order titled "Strengthening American Leadership in Digital Financial Technology." This order initiated a federal policy framework to support cryptocurrencies (prioritizing dollar-backed stablecoins) and ban Central Bank Digital Currencies (CBDCs). The move demonstrates the United States' attempt to position itself as the leader in digital finance, potentially countering competition from BRICs nations. Subsequently, the move aims toward new American job creation, enabling blockchain-companies to forge ahead in business growth.

Though speculation has renewed bull movements in crypto, what is still unclear is how the coins will be used and give value in a monetary exchange. Peter Schiff, American stockbroker, financial commentator, and host of SchiffRadio.com, commented on the reserve strategy questioning the rationale for the non-Bitcoin tokens.

The argument for XRP is it's liquidity in cross-border transactions, allowing the government to facilitate quicker and cheaper international payments, especially in emergencies. Ripple's partnership with financial institutions and existing lobbying efforts. Solana's primary value lies in its unmatched speed and exceptionally low costs, used currently to back meme coins. ADA has an energy-efficient PoS system, modular architecture, research-backed development, powerful smart contract functionality, and ambitious plans for scalability and interoperability.

Beyond the individual strengths of each token, the core rationale for diversifying type of currencies in the federal reserve point to fostering stability and flexibility in financial strategies, tapping each technology for its specific strengths and reducing risk. While the unique value appears promising, true value of XRP, ADA and SOL is undetermined at this point, given the lack of publicly disclosed information regarding each tokens role and specific quantities of the reserve.

On Friday March 7, 2025, the White House will host the first cryptocurrency summit, which will likely generate more waves of trades as the U.S. government moves closer to initiating the crypto stockpile.

All information provided is for informational purposes only, and shall not be relied upon as personal financial advice.