Crypto prices rally after Trump backs five coins for 'crypto reserve'

In a surprising turn of events, US President Donald Trump has announced his support for five specific cryptocurrencies that he believes should be included in a new strategic reserve. This initiative aims to position the United States as the 'Crypto Capital of the World. ' The five cryptocurrencies he mentioned are Bitcoin, Ethereum, XRP, Solana, and Cardano. Following this announcement, the market prices of these cryptocurrencies experienced a significant surge. During his presidential campaign, Trump actively sought the support of the cryptocurrency community, contrasting sharply with the previous administration under Joe Biden, which had implemented stricter regulations on cryptocurrencies due to concerns about fraud and money laundering. As of now, the exact mechanics of how this new reserve will function remain unclear, but further information is anticipated on Friday when Trump is set to host the inaugural Crypto Summit at the White House. In a social media post, Trump revealed that he had signed an order directing the Presidential Working Group to advance the creation of a Crypto Strategic Reserve that would encompass XRP, Solana, and Cardano. He later emphasized that Bitcoin and Ethereum would also play a central role in this reserve. The initial three cryptocurrencies he named saw their values soar by as much as 62% shortly after the announcement, while Bitcoin and Ethereum also experienced increases of over 10% each. This announcement marks a notable rebound for cryptocurrency prices, which had previously declined after a spike following Trump's election. Shortly after taking office in January, Trump signed an executive order to establish a presidential working group tasked with proposing new laws and regulations for cryptocurrencies. This order instructed the group to evaluate the potential creation and maintenance of a national digital asset stockpile, which could include cryptocurrencies that the Federal Government has lawfully seized through its law enforcement efforts. It remains uncertain whether the establishment of this new national strategic stockpile would require legislative approval from Congress. Interestingly, Trump had previously expressed skepticism about cryptocurrencies, labeling Bitcoin a 'scam' during a Fox News interview in 2021. However, in recent weeks, he appears to have shifted his stance, leading to accusations that he is attempting to profit from his policies while in office.