Ripple and XRP are at the center of a debate regarding their impact on a potential U.S. strategic Bitcoin reserve. XRP has significantly outperformed Bitcoin, but the likelihood of a U.S. reserve including XRP is low. The crypto community is divided, with some alleging Ripple undermines a U.S. BTC reserve. Former President Trump had initiated steps for a national digital asset stockpile, which could include various cryptocurrencies. Ripple, Kraken, and Circle are competing for influence in the proposed Trump Crypto Council. Critics argue XRP's centralized supply disqualifies it as a reserve asset. Political ties of Ripple's leadership are also under scrutiny. Despite these controversies, XRP continues to perform well against Bitcoin.

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The crypto community is divided on the issue of a “national crypto stockpile,” with top Bitcoin maxis alleging that Ripple is now “undermining: an exclusive U.S BTC strategic reserve.In a recent X post, Strike’s Jack Mallers claimed that the firm had used millions of dollars to sideline the king coin. For perspective, President Donald Trump issued a crypto executive order to set up a national digital asset stockpile and drive digital financial innovation in the United States. This could be likely within 180 days after the mandated working group finalizes a legislation framework. By extension, the update confirmed the initial speculation that entailed the potential creation of a ‘Made in USA’ crypto reserve, including XRP, HBAR, SOL, ADA, etc. However, key players’ diverse positions on the issue have become evident, going by the barbs being traded online. Ripple under siegeHere, it’s worth pointing out that Ripple, Kraken, and Circle have been vying for a seat within the yet-to-be-formed President’s Trump Crypto Council – The key coordinating group for crypto policy. However, the allegations go beyond that. One user claimed that unlike gold and Bitcoin, which are scarce and not centralized, XRP’s supply is primarily controlled by Ripple and doesn’t fit the criteria for a reserve asset. For his part, Ryan Selkis, Co-founder of Messari, blasted Ripple’s leadership for supporting Democratic senators in the last election. This, despite the infamous enforcement actions from previous Democrat-led SEC. For perspective, Chris Larsen, one of Ripple’s founders, donated over $10M to the Kamala Harris campaign. No Ripple executive had commented on the allegations at press time. That being said, long-time Bitcoin critic Peter Schiff downplayed the call for an exclusive SBR, stating that it would not solve U.S fiscal deficits. He said,In the meantime, Polymarket’s odds of a U.S XRP reserve in 2025 were just 21%, compared to 60% for SBR. However, on the XRP/BTC chart, XRP has outperformed BTC by +330% since last November.  Finally, it’s worth highlighting that the pair hit its 2021 cycle peak, something that could trigger a reversal or a blow-off top. 

Ripple and XRP's Role in U.S. Strategic Bitcoin Reserve Debate