#BTC, ETH, SOL, XRP, ADA Included in Strategic Reserves

On March 2, 2025, President Donald Trump surprised the financial world by announcing the formation of the United States' strategic crypto reserve. This move marks a significant shift in government policy towards digital assets.

Announcement and Market Impact

Initially, Trump mentioned that XRP, Solana (SOL), and Cardano (ADA) would be included in the strategic reserve. This announcement triggered a significant price surge:

- XRP: Up from $2.23 to $2.99, adding a market capitalization of $44 billion.

- SOL: Increased from $140 to $168.

- ADA: Surging from $0.68 to near $1.

Not long after that, Trump added Bitcoin (BTC) and Ethereum (ETH) to the reserves, causing further increases:

- BTC: Surging 9% to $93,000, adding $166 billion to market capitalization.

- ETH: Increased by more than 10%, reaching $2,433.8.

Long-term Impact on the Crypto Market

The formation of a strategic crypto reserve by the US government could have several long-term implications:

1. Legitimization and Adoption: Government support can enhance the legitimacy of crypto assets, driving wider adoption by institutions and individuals.

2. Price Stability: With the government as a significant holder, price volatility may be reduced, creating a more stable market.

3. Clearer Regulation: This step can encourage the development of a clearer regulatory framework, providing guidance for industry players and investors.

Crypto Summit at the White House

The upcoming crypto summit scheduled at the White House on Friday is expected to provide further insights into the government's policy direction. Some important signals that may emerge include:

- Tax Policy: Discussion on how crypto assets will be taxed.

- DeFi Regulation: Government's approach to decentralized finance.

- Security and Fraud: Steps to protect investors from fraudulent schemes.

Potential Addition of Crypto Assets to National Reserves

Although currently only five assets are announced, there is a possibility that other crypto assets will be added to the national reserve in the future. Factors that may affect this addition include:

- Market Capitalization: Assets with a large market value may be prioritized.

- Technology and Utilities: Projects with innovative technology and real-world use cases can be considered.

- Security: Assets with a strong security track record are more likely to be chosen.

Overall, this step marks a new chapter in the relationship between the government and digital assets, with the potential for significant impact on the future of the crypto industry.