Trump Opens Pandora’s Box with Cryptocurrency Executive Order

While European leaders and Mr. Starmer (UK) are busy figuring out how to save their ally (Zelenskyy) in Kyiv, a new ‘bomb’ exploded in Washington. Trump, fulfilling his campaign promise, announced that he signed an executive order creating a state reserve with five cryptocurrencies. The globally known Bitcoin and Ethereum, as well as the less-known Ripple XRP, Solana, and Cardano Ada, will now become legal reserves of the American public. Essentially, the U.S. government indirectly guarantees the nominal value of these cryptocurrencies, despite them having no tangible asset or service backing. This was the first ‘bomb.’ But before the dust settled, a second one followed. With a presidential directive, the Fed, the highest monetary oversight authority in the U.S., is excluded from overseeing the U.S. public’s cryptocurrency reserves. Market reactions were predictable, with sharp price increases in cryptocurrencies after weeks of decline. For instance, Bitcoin surged from around $83,000 to over $90,000 and is expected to exceed $100,000 soon. Meanwhile, the Federal Reserve seems left in limbo. A White House meeting on Friday will finalize the U.S. policy for integrating cryptocurrencies into the financial system—without inviting the Fed or the SEC. These moves raise significant questions about the dollar’s role and the global monetary system centered around it.