Trump Administration Considers US Cryptocurrency Strategic Reserve

TLDR

Trump administration reportedly considering creation of “America-first strategic reserve” including Solana, USDC, and XRP
Bitcoin price around $100,000, with total crypto market approaching $4 trillion
Circle contributed $1 million in USDC to Trump’s inaugural committee
XRP has increased 500% since Trump’s election victory
SEC preparing for cryptocurrency policy overhaul, with Solana ETF decisions expected January 25

The cryptocurrency market has experienced a remarkable surge following reports that the incoming Trump administration is considering the creation of an “America-first strategic reserve” that would include multiple digital assets.

According to sources cited by the New York Post, the reserve would encompass Solana, the USDC stablecoin, and XRP, alongside previously announced plans for bitcoin holdings.

Bitcoin’s price currently stands at approximately $100,000 per coin, representing a doubling in value over the past year. This increase has helped push the total cryptocurrency market capitalization to nearly $4 trillion, reflecting growing investor confidence in digital assets.

The proposed strategic reserve marks a expansion of Trump’s earlier commitment to bitcoin. During his appearance at the Bitcoin 2024 conference in July, then-candidate Trump promised to establish a “strategic national bitcoin reserve” and suggested bitcoin could surpass gold’s $16 trillion market capitalization.

Recent meetings between Trump and key industry figures have shaped the direction of the proposed reserve. The New York Post reported that Trump held discussions with Ripple CEO Brad Garlinghouse and Coinbase’s Brian Armstrong, describing the former president as “receptive” to including multiple cryptocurrencies in the reserve.

Circle, the company behind the USDC stablecoin, has already taken steps to align with the incoming administration. CEO Jeremy Allaire announced on social media platform X that the company contributed $1 million worth of USDC to Trump’s inaugural committee, following similar moves by other companies seeking to establish relationships with the new administration.

XRP, the cryptocurrency associated with Ripple, has seen its value increase by approximately 500% since Trump’s election victory. Market observers attribute this growth to expectations that the new administration might ease regulations that have affected Ripple’s XRP in the past.

Arthur Azizov, CEO of crypto platform B2BInPay, noted XRP’s market performance in emailed comments.

“While others experienced pullbacks, XRP has just been quietly accumulating, and now it’s moving toward its all-time high, which it is likely to surpass,” Azizov stated.

He projected that XRP’s price could exceed $10 in 2025.

The cryptocurrency Solana has also experienced substantial price appreciation, driven by speculation about potential approval of Solana-based exchange-traded funds (ETFs). The price has moved above $200, with four ETF proposals awaiting decisions by January 25.

Chris Chung, founder of Solana swap platform Titan, commented on the market movements. “The price of solana has shot well past the $200 mark today on speculation of a potentially imminent approval for a solana ETF,” he said, while cautioning about potential market volatility around the decision dates.

A Reuters report indicated that the Securities and Exchange Commission (SEC) is preparing to revise its cryptocurrency policies, according to anonymous sources. This development has further fueled optimism in the crypto market.

The broader context includes the recent success of bitcoin ETFs, which began trading in January following approval led by Wall Street firm BlackRock. These funds were followed by the introduction of ethereum-based ETFs.

Market observers are watching whether the proposed strategic reserve will prioritize U.S.-created cryptocurrencies. The inclusion of XRP and Solana in the plans suggests a focus on supporting American-developed blockchain technologies.

Circle’s USDC stablecoin represents a different category within the proposed reserve. As a dollar-backed digital currency, USDC could serve as a bridge between traditional financial systems and crypto markets in the government’s holdings.

Trading volumes across major exchanges have increased as investors respond to news about the potential government reserve. The market has shown particular sensitivity to any statements or reports related to the incoming administration’s crypto policies.

The Trump team’s interest in multiple cryptocurrencies represents a shift from the initial focus on bitcoin alone. This expanded approach could influence how other countries develop their own digital asset strategies.