- Trump’s crypto reserve plan boosted Bitcoin by 8% and altcoins by up to 60%, triggering discussions on asset selection.
- Industry leaders advocate for a Bitcoin-only reserve, arguing BTC remains the dominant digital store of value.
- Legal hurdles persist as the Ripple lawsuit nears resolution, adding uncertainty to XRP’s strategic reserve status.
The Trump administration introduced a strategy to construct strategic Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) reserves for the United States. The cryptocurrency community strongly reacted to this decision because some Bitcoin advocates question why XRP altcoins were added since they face ongoing legal troubles with the US Securities and Exchange Commission (SEC).
The recent announcement led to a multiplied cryptocurrency price. Bitcoin delivered an 8% gain but XRP climbed 25% to 60% together with Solana and Cardano during the latest 24 hours. Although customers have demonstrated enthusiasm for the decision, the XRP inclusion in the Bitcoin reserve continues to generate uncertainties about its incorporation.
Bitcoin Advocates Question XRP’s Inclusion
Business leaders in the industry have openly questioned which cryptocurrencies were selected. The logic behind Bitcoin deposits as digital gold reserves received support from economist Peter Schiff who nonetheless asked for XRP’s absence from the reserve.
A Bitcoin reserve makes sense to me yet I remain opposed to its existence. But why XRP? What possible rational supports that?” Schiff remarked. The implementation received opposition from him as he saw political reasons at play in the decision.
Cardano founder Charles Hoskinson rejected these worries by praising XRP’s performance throughout ten years and its large cryptocurrency supporter base.
Industry Leaders Support a Bitcoin-Only Reserve
Several prominent figures in the crypto sector have voiced support for a Bitcoin-only reserve. Hunter Horsely, CEO of Bitwise, noted that Bitcoin remains the dominant store of value in the digital economy.
“Many crypto assets have unique strengths, but reserves should focus on a single asset. BTC is the most credible store of value in the digital era,” Horsely stated.
Coinbase CEO Brian Armstrong echoed similar sentiments, advocating for Bitcoin’s exclusivity in the strategic reserve. He suggested that if diversity is necessary, an index fund approach based on market capitalization could provide a neutral solution.
XRP provides additional focus to regulators because the SEC continues its legal dispute against Ripple. The control Ripple maintains over XRP supply has triggered critical opposition that centralization and possible regulatory problems exist. Bill Morgan, who supports XRP, denied these claims by revealing that Ripple had decreased its escrow stock so that the current circulating supply reached 62.33% levels.
Meanwhile, Attorney Jeremy Hogan pointed out that the resolution of the Ripple lawsuit could be approaching. He highlighted a pending injunction as the primary factor delaying progress. Hogan suggested that both parties might withdraw their appeals by April, potentially concluding the case by May.
The decision to include multiple cryptocurrencies in US strategic reserves has sparked a divisive debate. Industry professionals have differed on whether to maintain a Bitcoin-only reserve while others support diversification to enhance the digital asset leadership position of the country. Market observers are closely watching regulatory updates about XRP as well as its legal standing after the latest market news.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
