USA Plans to Launch Its Own Crypto Reserve

The Move

The move sparked excitement, confusion, and plenty of questions about what it meant for the U.S. and the global crypto market. While proponents saw it as a step toward economic security and financial innovation, critics warned of potential volatility and regulatory challenges. Trump’s declaration came ahead of the White House Crypto Summit, scheduled for March 7, where additional details were formalized.

A Shift in U.S. Crypto Policy

The concept of a national crypto reserve echoes Trump’s 2024 campaign promise to make the U.S. a dominant force in digital currencies. This marks a stark departure from his previous skepticism; in 2021, he dismissed Bitcoin as a “scam.” Now, he asserts the reserve will “elevate this critical industry” and establish the U.S. as the “crypto capital of the world.”

Following the announcement, cryptocurrency markets experienced a sharp surge. Bitcoin rose 9% to surpass $92,000, Ethereum climbed 12% to $2,477, and Cardano spiked 60% to $1.25. XRP and Solana also recorded significant gains, while the overall crypto market capitalization increased by over $300 billion within hours, according to Coinbase data.

Understanding the Crypto Strategic Reserve

Modeled after the U.S. Strategic Petroleum Reserve, the Crypto Strategic Reserve is expected to hold digital assets for economic stabilization, potential debt reduction, and national security purposes. The initiative builds on an executive order signed by Trump in January 2025, titled “Strengthening American Leadership in Digital Financial Technology,” which established a Presidential Working Group on Digital Asset Markets.

Initial reports suggested the U.S. might utilize the 200,000 Bitcoins—worth approximately $17 billion—already seized from criminal activities.

Senator Cynthia Lummis, a longtime Bitcoin advocate, has championed the idea of using crypto reserves as a fiscal strategy. Her 2024 proposal to acquire 1 million BTC over five years aimed at reducing national debt.

While Trump’s plan includes multiple cryptocurrencies, the administration has yet to clarify whether acquisitions will involve taxpayer funds or existing government holdings.

Market and Regulatory Implications

The initiative has drawn mixed reactions from industry leaders. Coinbase CEO Brian Armstrong advocates for a Bitcoin-only reserve, arguing it is a more stable asset than gold. Others, including economist Stephen Cecchetti, caution against relying on volatile digital currencies for national financial policy.

A New Era for U.S. Crypto Regulation?

Trump’s embrace of digital assets marks a stark contrast to the Biden administration’s regulatory crackdown on the industry. Since taking office, Trump has rolled back enforcement actions, including halting the SEC’s lawsuit against Coinbase. Crypto firms, which contributed significantly to his 2024 campaign, view the shift as a positive development.

However, concerns over potential conflicts of interest have surfaced. Trump’s family-backed financial firm, World Liberty Financial, and the emergence of $TRUMP meme tokens raise questions about personal involvement in the crypto sector. Regulatory scrutiny over transparency and governance is expected to intensify as the plan unfolds.

Global Impact and Future Prospects

The U.S. already holds more Bitcoin than any other nation, and a formal reserve could reshape global market dynamics. Countries such as Bhutan, which holds 11,000 BTC, may consider similar strategies. The success of the initiative, however, will depend on its execution and ability to mitigate the volatility inherent in cryptocurrency markets.

So, whether this initiative cements the U.S. as a leader in digital finance or introduces new risks to federal financial strategy remains to be seen.