The cryptocurrency market is experiencing a remarkable surge following an unexpected announcement from former U.S. President Donald Trump. His decision to officially establish a strategic crypto reserve—a national fund designed to hold key cryptocurrencies—has triggered a massive buying frenzy. Investors’ enthusiasm has pushed several assets to levels unseen in weeks, with Cardano (ADA), XRP, and Solana (SOL) leading the rally. However, despite the market’s excitement, this initiative has also sparked criticism and raised questions about its true motives and potential consequences.
A Strategic Reserve Fueling Crypto Growth
Trump’s announcement had an immediate impact on the crypto market. By unveiling the strategic crypto reserve, he confirmed the inclusion of Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL) in this unprecedented fund. Described as a move toward economic sovereignty, the initiative aims to store cryptocurrencies acquired through legal purchases and federal asset seizures.
The market’s reaction was swift. Within 48 hours, the total cryptocurrency market capitalization jumped by 20%, recovering from the losses accumulated in late February. The biggest gainers were Cardano and XRP, followed by Trump’s official meme coin and Solana, which surged by 24.8%. Meanwhile, Binance Coin (BNB), despite staying in the green, saw a relatively modest increase of just 2.55%, making it one of the weakest performers among the top 10 cryptocurrencies by market cap.
A Divisive Initiative in the Crypto Industry
While this announcement ignited market excitement, it has not been universally welcomed by key figures in the crypto space. Some industry leaders, particularly Bitcoin maximalists, have questioned the logic behind including non-BTC assets in the strategic reserve.
Venture capitalist Naval Ravikant openly criticized the initiative, stating on X (formerly Twitter) on March 2, 2025, that:
“American taxpayers shouldn’t be providing exit liquidity for supposedly decentralized cryptocurrencies.”
Aave founder Stani Kulechov also expressed skepticism, pointing out the absence of DeFi protocols in the selection. On March 2, he posted:
“The good news: A strategic crypto reserve is in development. The bad news: No DeFi protocols. Worst of all: XRP, SOL, and ADA are included.”
Even Peter Schiff, a well-known Bitcoin critic, admitted that a BTC reserve might make sense, comparing Bitcoin to “digital gold surpassing physical gold.” However, he questioned the value of including XRP and other altcoins in the fund.
Regulatory Uncertainty and Institutional Influence
This move also raises critical questions about how the reserve will be managed and what impact it could have on market regulation. The operational framework remains unclear, particularly regarding how the U.S. government intends to utilize these assets.
Additionally, the centralization debate is heating up, with critics viewing this initiative as an attempt to legitimize specific cryptocurrencies within U.S. institutions. If this reserve accelerates institutional adoption of crypto, it could fuel further market growth but also introduce new regulatory challenges.
As more details emerge in the coming weeks, one thing is certain: this announcement marks a significant shift in U.S. policy toward cryptocurrencies. Whether it will strengthen the crypto ecosystem or lead to increased government control remains a heated debate.