On the 2nd local time, former U.S. President Donald Trump officially announced the establishment of the ‘U.S. Crypto Strategic Reserve’, which includes major cryptocurrencies such as Bitcoin and Ethereum, causing a stir in the digital asset market once again.
Trump declared the inclusion of major cryptocurrencies such as Solana, Ripple (XRP), and Cardano as reserves, emphasizing his intention to make America the ‘cryptocurrency capital of the world’. This plan is an extension of an executive order Trump issued in January to review digital asset reserves, signaling a strong commitment from the U.S. government to actively participate in the cryptocurrency industry.
The market responded immediately following the announcement. Bitcoin surged 9%, while Ethereum and Solana jumped 11% and 20% respectively. XRP soared by 38%, and Cardano skyrocketed by an astounding 78%, provoking enormous expectations. However, behind the euphoria, significant questions have emerged. This unprecedented experiment of injecting massive public funds into digital assets without a clear plan has commenced.
Trump’s latest announcement marks a stark departure from the existing government stance. Contrary to the Biden administration, which has been promoting regulatory tightening, Trump publicly disclosed plans to foster the cryptocurrency industry at a national level. He declared, “We will revive the cryptocurrency industry harmed by corrupt government attacks,” and emphasized his decision to halt the development of Central Bank Digital Currency (CBDC) and support the private cryptocurrency ecosystem. It marks the first time the U.S. federal government is incorporating cryptocurrency as a strategic asset.
The issue lies in the structural risk that such a bold attempt entails. Firstly, the financing source for reserve formation is unclear. Utilizing taxes would inevitably burden citizens, and great price volatility poses a risk of national finances becoming subjugated to the market. Furthermore, cryptocurrency’s typical risks such as hacking, fraud, and tax evasion loom large. Should the U.S. government acquire these assets on a large scale with public funds, it could undermine international trust and spark diplomatic tensions.
Given the complex risks involved, Trump’s experiment needs a meticulous safety net if it is to succeed.
First, rigorous regulation must be thoroughly supported. Reserve formation is not merely about purchasing; it’s about ensuring systematic operations that guarantee stability and credibility. To achieve this, a transparent fund management system and strict audit procedures must be established, with the entirety of the process from purchase to storage and sale being made public to the citizens. Especially if taxpayer money is invested, securing a legal basis and congressional approval through national consensus are essential.
Secondly, international collaboration is necessary. If the U.S. independently undertakes large-scale cryptocurrency reserves, it could lead to market price distortion and turmoil. To prevent this, discussions to establish joint regulations and international reserve standards with major countries at the ‘2025 Cryptocurrency Summit’ scheduled for March 7 are required. Building a cooperative system based on international trust is the way to enhance market stability and reliability.
Third, enhancing technical security measures is crucial. As cryptocurrencies are vulnerable to cyberattacks, if the country holds large assets, it inevitably becomes a major target for hackers. Especially since it has the potential to become the largest in the world, simple defenses have limits. Constructing military-grade security systems and leveraging the latest technologies like distributed storage and multisig are necessary to guard against external threats. If a security incident occurs, it could spread beyond financial loss to become a crisis threatening the entire nation.
Trump’s announcement is a significant variable that could reshape the global cryptocurrency market. In a climate dominated by regulatory tightening, it’s meaningful as the first instance of the public sector venturing into cryptocurrency investment. However, innovation does not arise from unprepared challenges. The strategy can only succeed with transparent fund management free from citizen burden, international cooperation, and thorough security. Moving the market alone cannot guarantee the future of the nation. To realize his vision of making the U.S. the world cryptocurrency capital, Trump now needs a viable solution.