President Donald Trump’s announcement on Sunday that the United States would establish a cryptocurrency reserve with five tokens caused prices of cryptocurrencies to slightly decline on Monday.
Following two Trump messages expressing his support for a reserve of cryptocurrencies comprising bitcoin (BTCUSD), Ethereum (ETHUSD), Solana (SOLUSD), XRP (XRPUSD), and Cardano (ADAUSD), a lot remained unclear regarding the White House plan.
Trump did not specify the size of the reserve, how it would be financed, or when it would be established in his two statements on his Truth Social platform.
On the social media site X, White House AI and crypto czar David Sacks stated that Trump’s declaration aligned with his executive order from week one, which called for enhancing American leadership in digital finance technologies.
That directive supported open public blockchain networks without discrimination, but it did not expressly call for the establishment of a reserve—something Trump had mentioned during the campaign in terms of bitcoin.
At Friday’s White House crypto symposium, which he is chairing, more will be revealed, according to Sacks. The White House announced last week that notable entrepreneurs, CEOs, and investors from the cryptocurrency sector will be among the attendees.
“From the perspective of reserve management, this action shows that the US government is moving toward more active involvement in the cryptocurrency market. Federick Brokate, head of U.S. operations at 21Shares, a company that provides exchange-traded securities, stated that it has the ability to boost the U.S.’s leadership in digital asset innovation, speed up institutional adoption, and increase regulatory clarity.
The announcement caused a spike in all cryptocurrencies, but especially in Cardano. Crypto-related stocks, particularly Strategy (MSTR) and Coinbase Global (COIN), had premarket gains of 8% to 12% on Monday.
Despite the spike, the value of Ethereum and Bitcoin has decreased this year, with the latter being negatively impacted by the $1.5 billion hack at the Bybit exchange.
Trump is actively active in the cryptocurrency space; shortly before his inauguration, he introduced two memecoins on the Solana blockchain, and World Liberty Financial, which is supported by his family, has Ethereum reserves.
Following Friday’s advances, Melania (MELANIAUSD) and Trumpcoin (TRUMPUSD) both saw declines in trading.
