Key Points
- Bitcoin maxis accuse Ripple of undermining a potential U.S. Bitcoin strategic reserve.
- XRP has outperformed Bitcoin by +330% since November 2024.
The crypto community is currently split over the concept of a national crypto stockpile. High-profile Bitcoin supporters allege that Ripple is jeopardizing a proposed exclusive U.S. Bitcoin strategic reserve.
Strike’s Jack Mallers recently stated in a post that Ripple has used millions of dollars to undermine Bitcoin. He accused Ripple of lobbying against a Bitcoin Strategic Reserve in the U.S., while promoting their own centralized, corporate-controlled token.
Background and Controversy
This controversy comes after President Donald Trump issued a crypto executive order to establish a national digital asset stockpile and promote digital financial innovation in the U.S. This stockpile could potentially include a variety of cryptocurrencies, including XRP, HBAR, SOL, ADA, and others. However, disagreement among key players has become apparent, as evidenced by the online exchanges.
Ripple, Kraken, and Circle are all competing for a position within the not-yet-established President’s Trump Crypto Council, a key group for crypto policy coordination. However, Ripple has been accused of not meeting the criteria for a reserve asset due to its strong association with Ripple and the company’s control over a large portion of its supply.
Ryan Selkis, Co-founder of Messari, criticized Ripple’s leadership for supporting Democratic senators in the last election, despite previous enforcement actions from a Democrat-led SEC. Ripple’s founders have also been implicated in political donations, with Chris Larsen donating over $10M to the Kamala Harris campaign.
Market Performance and Predictions
Despite the controversy, XRP has outperformed Bitcoin by +330% since last November. The odds of a U.S XRP reserve in 2025 were just 21%, compared to 60% for a Bitcoin strategic reserve, according to Polymarket.
However, it’s important to note that the XRP/BTC pair hit its 2021 cycle peak, which could potentially trigger a reversal or a blow-off top.
