Trump’s Strategic Crypto Reserve prioritizes XRP, SOL, and ADA over Bitcoin and Ethereum. Discover the reasons behind this bold move, its economic and political implications, and how it impacts the crypto market.
Since his return to the White House, President Donald Trump has taken a new approach to the cryptocurrency industry, focusing on clearer regulations and the establishment of a Strategic Crypto Reserve.
However, what has sparked widespread interest is his preference for certain digital assets—XRP, Solana (SOL), and Cardano (ADA)—over more established cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Why Trump Supports XRP, SOL, and ADA
Ki Young Ju, CEO of CryptoQuant, explains that the Trump administration backs only digital assets that align with U.S. national interests. This strategic selection aims to bolster America’s financial dominance on the global stage.
According to a Zycrypto report, Young Ju noted on the platform X that the crypto industry has become a powerful tool for the U.S. to strengthen its financial influence worldwide.
By supporting these particular assets, the administration seeks to attract foreign capital into the U.S. crypto market, giving the country a competitive advantage.
Trump has instructed the Presidential Working Group to continue developing the Strategic Crypto Reserve with XRP, SOL, and ADA as key assets. Initially, Bitcoin and Ethereum were excluded, but they were later added.
However, Young Ju argues that this inclusion does not necessarily benefit BTC and ETH, as both are considered more neutral on a global scale.
Cryptocurrency as America’s Economic Weapon
Trump’s policy suggests that digital assets aligned with U.S. interests will receive regulatory protection and support. In contrast, neutral or unfavorable assets could face stricter regulations.
This shift is evident in more lenient policies toward projects that align with the administration’s agenda, such as meme coins themed around Trump.
Young Ju remarked, “Now, if something benefits Trump and supports U.S. national interests, it is no longer considered illegal.” This statement underscores the administration’s willingness to back crypto projects that follow government policies.
Community Reactions to Trump’s Crypto Policies
Despite debates about the selection of assets for the Strategic Crypto Reserve, many crypto investors welcome this policy shift. It signifies greater acceptance of the industry in the U.S. and presents opportunities to attract new capital into the market.
Since taking office again, Trump has implemented strategic crypto policies, including establishing a specialized task force to develop clearer regulations.
Some U.S. states are also drafting legislation to create Strategic Bitcoin Reserves, marking a significant shift from previous administrations’ restrictive stance on cryptocurrencies.
Understanding Trump’s Crypto Picks
In a Truth Social post, Trump confirmed that his executive order on digital assets would create a national stockpile of XRP, SOL, and ADA. This announcement surprised many traders, causing a price surge for these tokens.
Later, Trump added Bitcoin and Ethereum to the reserve. Below is a breakdown of the selected cryptocurrencies:
1. XRP
Created by U.S.-based Ripple, XRP is the world’s third-largest cryptocurrency, with $140 billion in circulation and a price of approximately $2.40 per token. Ripple promotes XRP as a faster and cheaper alternative for global fund transfers compared to Bitcoin.
Despite its volatility, XRP has gained regulatory support, with Ripple’s President Monica Long stating that the company’s political action committee (PAC) supports candidates advocating pro-crypto regulations.
2. Solana (SOL)
SOL is the token powering the Solana blockchain, often used for launching meme coins—including Trump’s own cryptocurrency, introduced in January 2025. With $73 billion worth of tokens in circulation, SOL ranks as the sixth-largest cryptocurrency.
However, it has experienced significant volatility, particularly due to its past association with former FTX CEO Sam Bankman-Fried. Despite this, Solana remains a strong Ethereum competitor, especially in the NFT market.
3. Cardano (ADA)
Founded in 2015 by Ethereum co-founder Charles Hoskinson, Cardano (ADA) has $31.4 billion in circulation, making it the eighth-largest cryptocurrency.
ADA experienced a substantial price increase of over 70% following Trump’s announcement. Cardano’s decentralized structure includes five key entities, including the Switzerland-based Cardano Foundation and the for-profit company Emurgo.
4. Bitcoin (BTC)
As the world’s first and most valuable cryptocurrency, Bitcoin has a market cap exceeding $1.7 trillion, accounting for over half of the $3 trillion digital asset market. The SEC’s approval of Bitcoin ETFs in January 2024 and Trump’s pro-crypto stance have contributed to its price surge.
However, Bitcoin’s decentralized nature means it lacks direct political alignment, making its initial omission from the Strategic Crypto Reserve surprising.
5. Ethereum (ETH)
Ethereum powers decentralized finance (DeFi) applications and smart contracts. Founded by Vitalik Buterin, it remains the second-largest cryptocurrency.
Trump-affiliated company World Liberty Financial has issued digital tokens on Ethereum, raising over $500 million. The Ethereum blockchain continues to play a major role in reshaping global finance.
The Political and Economic Implications
Trump’s crypto reserve announcement has generated discussions about his administration’s broader economic strategy. The initial exclusion of Bitcoin raised concerns among BTC proponents who view it as the cornerstone of decentralized finance.
Some analysts argue that prioritizing XRP, SOL, and ADA over Bitcoin and Ethereum could introduce volatility and political risk.
David Sacks, Trump’s Crypto Czar, and Bo Hines, Executive Director of the initiative, have faced criticism for their handling of crypto policy.
Critics point to Trump’s controversial meme coin launches ($TRUMP and $MELANIA) and argue that the administration lacks deep expertise in digital asset regulation.
Potential Risks and Future Developments
The inclusion of relatively illiquid assets like XRP, SOL, and ADA in the Strategic Crypto Reserve could pose financial risks. Bitcoin’s daily trading volume far exceeds that of these tokens, making it the most stable choice for a national reserve.
Solana has experienced periodic network outages, and XRP’s centralized governance has drawn scrutiny.
If any of these tokens collapse, the administration may face political fallout, damaging trust in government-backed crypto policies. The Terra (LUNA) crash in 2022 and the FTX scandal serve as reminders of the volatility and regulatory risks in the digital asset market.
The Road Ahead: Bitcoin’s Rising Influence
Despite the focus on XRP, SOL, and ADA, Bitcoin remains the most dominant digital asset. Trump’s policies, while seemingly favoring certain tokens, have indirectly boosted Bitcoin’s appeal as the most liquid and decentralized cryptocurrency.
Following Trump’s announcement, Bitcoin’s price surged by approximately 7%, adding nearly $100 billion to its market cap.
The upcoming White House Crypto Summit, led by Sacks and Hines, will provide further clarity on the administration’s long-term digital asset strategy. If Trump pivots toward prioritizing Bitcoin’s security and liquidity, the U.S. could emerge as a leader in the digital financial revolution.
Conclusion
Trump’s approach to cryptocurrency represents a paradigm shift in U.S. digital asset policy. While the Strategic Crypto Reserve prioritizes XRP, SOL, and ADA, Bitcoin remains the most significant player in the market.
The administration’s regulatory stance will shape the future of crypto adoption in the U.S., influencing global financial markets. Whether this initiative succeeds or encounters regulatory hurdles remains to be seen, but one thing is clear—cryptocurrency is now firmly on the national agenda.
This press release has also been published on VRITIMES
