Ripple News Today: Is XRP a Risk to Bitcoin’s Place in the U.S. Crypto Reserve?

The cryptocurrency market experienced a major shift after President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President confirmed his plans for a U.S. “crypto strategic reserve.” In a post on Truth Social, Trump revealed that Bitcoin and Ethereum would serve as the backbone of the reserve, but Solana (SOL), XRP, and Cardano (ADA) would also be included. This announcement raised some concerns, particularly regarding the inclusion of XRP. Critics quickly pointed out that using taxpayer money to purchase XRP, an asset where Ripple controls a large portion of the circulating supply, could be problematic.

One user expressed concerns, calling the idea of buying XRP with U.S. taxpayer funds “pure insanity” due to Ripple’s significant control over the supply. “Trump needs to understand the gravity of this mistake,” they added, questioning the advice he’s receiving. 

In defense, pro-XRP lawyer Bill Morgan responded, clarifying that the amount of XRP held in escrow had significantly decreased and that Ripple’s control over the circulating supply was much smaller than critics claimed. He also accused those spreading misinformation of relying on outdated arguments and anti-XRP sentiment.

Alex Xu, a research partner at Mint Ventures, also raised concerns. He argued that including SOL, XRP, and ADA might hurt Bitcoin’s position as the main asset in the reserve. Xu pointed out that these altcoins have supported Trump in the past, including through donations, and suggested that this could be a political favor more than a strategic decision. He warned that this could make it harder for the BTC reserve bill to pass.

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Moreover, Xu warned that while the presidential working group is advancing the initiative, it’s another challenge to pass legislation that includes altcoins like SOL, ADA, and XRP in the national reserve. Given the current weak Republican advantage in the House of Representatives, passing such legislation could prove difficult. There is also speculation that Trump could bypass Congress and establish a national sovereign fund under the Treasury Department to purchase these assets directly.