Zinger Key Points
- The order allows Treasury and Commerce to expand bitcoin holdings through budget-neutral strategies, excluding altcoins.
- Treasury Secretary Scott Bessent suggested altcoins may eventually be included, despite the order’s clear focus on Bitcoin.
- Find out which stock just plummeted to the bottom of the new Benzinga Rankings. Updated daily—spot the biggest red flags before it’s too late.
The cryptocurrency community was hit with a stunning twist, when an executive order signed by President Donald Trump dashed the hopes of Ripple and its supporters.
After pouring millions into political contributions to push for XRP XRP/USD's inclusion in a U.S. sovereign crypto reserve, the company and its co-founders watched their efforts unravel.
What Happened: Over the weekend, David Sacks, dubbed the "Crypto Czar," shared the signed document on X, revealing that XRP would not be part of any strategic reserve as Trump had once vowed.
Back on March 2, Trump had fueled excitement by pledging to establish a crypto strategic reserve featuring XRP, sparking a 36% price surge for the token within an hour.
Yet, the reality unveiled in the executive order was starkly different.
Far from elevating XRP to a prized reserve asset, Trump designated it a "Stockpile Asset," meaning the government can only hold or sell it—no purchases allowed.
The document explicitly states, "the United States Government shall not acquire additional Stockpile Assets other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action."
This sell-only stockpile isn't exclusive to XRP.
Other popular cryptocurrencies like Solana SOL/USD, Cardano ADA/USD, and Ethereum ETH/USD—also name-dropped by Trump in his earlier promise—landed in the same boat.
Also Read: Crypto Exchange Kraken Sets Sights On 2025 Initial Public Offering
Why It Matters: Bitcoin BTC/USD emerged as the golden child, the only digital asset the U.S. government is permitted to actively acquire. Trump's order greenlit a Bitcoin Strategic Reserve, kickstarting it with roughly 200,000 BTC already in federal hands from seizures, though much of that is earmarked for distribution to Bitfinex.
The Treasury and Commerce departments, led by Secretaries Scott Bessent and Howard Lutnick, were tasked with finding budget-friendly ways to bolster Bitcoin holdings.
The fallout for XRP has been swift.
After its March rally, the token has clung to just 10% of those gains, reflecting the disappointment rippling through its fervent "XRP Army."
Social media buzzed with frustration, with one X user, Fish Bernoulli, summing it up on March 7: "Created a Bitcoin-only strategic reserve, tasked the treasury to buy more Bitcoin, put existing shitcoins in a stockpile & not buy more."
Adding a layer of confusion, Treasury Secretary Bessent appeared on CNBC the morning of March 10, hinting at a broader vision. "We're starting with Bitcoin, but it's an overall crypto reserve," he said, despite the order's clear Bitcoin-only mandate.
His comments raised eyebrows, given his role in shaping the acquisition strategy alongside Lutnick, leaving some to wonder if future tweaks might still be in play.
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