In early March, President Donald Trump announced the creation of a strategic crypto reserve, causing controversy and geopolitical discussions.
Announcement of Crypto Reserve
In a post on Truth Social, Trump stated his intention to make the U.S. the crypto capital of the world. The reserve will include XRP, Solana, and Cardano, but Bitcoin and Ethereum were notably absent. Trump claimed the initiative would be part of an executive order aimed at securing U.S. leadership in cryptocurrency.
Lobbyist Controversy
It has been reported that the language used in the post was drafted by an employee of Ballard Partners, a lobbying firm that represents Ripple. It later emerged that Trump was unaware that the suggestion came from a group representing Ripple’s interests, which left him feeling blindsided and manipulated on his public platform.
Market Impact of the Announcement
The crypto market reacted quickly to Trump's announcement, with prices of XRP, Solana, and Cardano witnessing noticeable increases. Although Ripple does not control XRP, the connection has led some to view it as an endorsement. Trump later clarified that the reserve would also include Bitcoin and Ethereum by signing an executive order for the establishment of a Strategic Bitcoin Reserve.
The announcement of the U.S. strategic crypto reserve has prompted discussions about the role of lobbyists in presidential policies and significantly impacted crypto market dynamics.
