US Government’s Strategic Crypto Reserve: Ripple’s Influence and Market Implications
In a groundbreaking announcement on Sunday, President Donald Trump introduced a Strategic Crypto Reserve comprising various digital assets, including Bitcoin, Ether, XRP, Solana (SOL), and Cardano (ADA). The inclusion of altcoins like XRP, SOL, and ADA in a federal directive initially presumed to be Bitcoin-centric took many by surprise. Recent findings from Unchained propose that Ripple may have played a pivotal role in this move, potentially boosting XRP’s stature within both government and the cryptocurrency community.
Ripple’s Role in Integrating SOL and ADA into the Reserve
According to an Unchained report, Ripple Labs’ executives may have been instrumental in advocating for Solana’s inclusion. This strategy aimed to dispel any speculation that President Trump’s reserve was exclusively designed to favor XRP. Sources with insights into these discussions reveal that Ripple CEO Brad Garlinghouse and Chief Legal Officer Stu Alderoty emphasized the importance of incorporating multiple US-based tokens within any government-backed crypto portfolio.
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Industry commentators suggest that Ripple likely recognized the potential backlash of endorsing a reserve featuring XRP without other notable altcoins. An analyst highlighted that Solana and Cardano are generally perceived as more community-oriented compared to XRP, which faces ongoing scrutiny concerning its usage’s legitimacy and scale.
Unexpected Prioritization in Trump’s Announcement
Curiously, in Trump’s initial post on Truth Social, Bitcoin and Ether were conspicuously absent, despite their dominant market positions. Instead, XRP, SOL, and ADA were prominently featured. This unconventional order has sparked further discussion regarding the Trump administration’s underlying motives.
Ripple’s Justification and Public Response
When questioned about whether Ripple specifically promoted Solana’s inclusion to make XRP’s presence more acceptable, a Ripple spokesperson pointed to a tweet from CEO Brad Garlinghouse:
“I’ve said this before – the crypto industry will achieve our goals (and beyond), IF WE WORK TOGETHER. Appreciate the crypto President @realDonaldTrump’s vision of a govt digital asset reserve representative of the industry. Maximalism is the enemy of the industry’s progress. Glad to see POTUS recognizing we live in a multichain world and that we’re finally moving past Bill Hinman and the Biden administration’s SEC’s very broken thinking. I will certainly continue to champion this while in Washington at the end of this week.”
Skepticism Surrounding Government Control
Anatoly Yakovenko, co-founder of Solana, expressed skepticism about a government-regulated crypto reserve. He shared his reservations on social media:
“My reserve order of preference: No reserve, because if you want decentralization to fail, you’d put the government in charge of it. Or states run their own reserve as a hedge against the fed making a mistake. Or if there has to be a reserve, it’s based on objectively measurable requirements. If there is a target to beat, the Solana ecosystem will get it done.”
When questioned by Unchained’s Laura Shin, Yakovenko clarified that he was unaware of any lobbying efforts by Ripple regarding Solana, asserting, “What’s a Solana representative? No one asked me, and I didn’t pitch it.”
Cardano’s Unexpected Inclusion
Similarly, Charles Hoskinson, founder of Cardano, shared his surprise over ADA’s inclusion in a March 5 video, stating, “We knew nothing about ADA being selected for the reserve. It was news to me.” Speculation arises that Ripple might have advocated for ADA’s addition to lend greater credibility to XRP’s presence.
Hoskinson recounted learning of ADA’s selection only after receiving numerous congratulatory messages, noting that any potential engagement with the White House preceding the announcement never occurred: “We never even knew about it, and nobody even talked to us about it,” he added.
Anticipation Grows for the Upcoming Crypto Summit
As speculation intensifies, the industry eagerly awaits the first Crypto Summit at the White House on Friday. This event promises to unveil further details on the crypto reserve’s composition and procurement strategy. Commerce Secretary Howard Lutnick hinted at a potential focus on Bitcoin:
“A Bitcoin strategic reserve is something the President’s interested in. He spoke about it all during the campaign trail, and I think you’re going to see it executed on Friday. So Bitcoin is one thing, and then the other currencies, the other crypto tokens, I think, will be treated differently—positively, but differently.”
As of this writing, XRP was trading at $2.58.
