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 J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     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.