President Donald Trump has announced that five cryptocurrencies will be included in a “Crypto Strategic Reserve”. The move signals a continuing shift in the US government’s stance towards cryptocurrency, with Trump promising to position the United States as a global leader in crypto.
Two hours later, following a notable omission of bitcoin and Ethereum in the initial post, Trump clarified that these would be included:
The announcement woke the crypto industry out of its recent slump with the named cryptocurrencies surging following the announcement.
Trump’s declaration has ignited debate on social media, with some users advocating for a bitcoin-only reserve.
The announcement follows Trump’s previous commitment at the Bitcoin Nashville where he pledged to establish a national bitcoin stockpile and ensure that the US government retained 100% of all bitcoin it currently held (most from seizures by law enforcement) or acquired in the future. However, Trump has now shifted from advocating a “stockpile” to proposing a “reserve”. While a stockpile implies merely holding government-owned crypto, a reserve suggests acquiring cryptocurrency in regular instalments and potentially using it as a backing for other assets.
Trump’s crypto policy shift builds on his earlier executive order, “Strengthening American Leadership in Digital Financial Technology” issued in January 2025, which revoked Joe Biden’s 2022 directive on digital assets. Trump’s order also prohibited the creation, issuance, circulation and use of Central Bank Digital Currencies (CBDCs) in the United States.
It remains to be seen whether congressional approval will be needed to implement the reserve and whether the US Government is likely to intervene in crypto-markets in the short term to establish a reserve or merely retain its current holdings seized by law enforcement. Trump is set to host the first White House Crypto Summit on 7 March 2025, where more details on the Crypto Strategic Reserve and his broader digital asset policies may be revealed.
The United States is not the only country which holds significant investments or a stockpile of crypto-assets. Governments globally are increasingly interacting with crypto-assets as an investment or strategic asset or due to law enforcement seizures. A range of policy approaches are evident to date, however, Australia seems unlikely to follow the Trump administration's move any time soon. A number of US states are also moving towards holding crypto reserves.
While some will see the move as a marker of cryptocurrencies increasing acceptance as a strategic asset in the digital economy, the precise objectives of the reserve remain unclear. Some see cryptocurrencies like bitcoin as a potential inflation hedge, although they are plainly subject to price volatility and any government intervention in cryptocurrency markets is likely to be closely scrutinised for policy and economic reasons.
By Steven Pettigrove, Luke Misthos, and Emma Assaf with Michael Bacina
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