President Donald Trump unveiled a strategic cryptocurrency reserve Sunday, naming Bitcoin, Ethereum, XRP, Cardano, and Solana as core holdings. The move aims to position the U.S. as a crypto leader. However, XRP’s inclusion sparked immediate backlash. Economist Peter Schiff questioned its rationale, calling it unnecessary. Meanwhile, Cardano founder Charles Hoskinson defended the decision, praising XRP’s technology and global adoption.
Transitioning from traditional reserves, Trump emphasised Bitcoin’s “digital gold” narrative. Yet critics argue altcoins like XRP lack comparable value propositions. Schiff later doubled down, labelling the reserve a “bailout” for struggling crypto markets.
Schiff Slams XRP’s Inclusion: “Why The Hell Do We Need It?”
Peter Schiff, a long-time Bitcoin skeptic, blasted XRP’s reserve role on X (formerly Twitter). “I get Bitcoin’s ‘digital gold’ angle,” he stated. “But XRP’s purpose here is baffling.” Schiff suggested Trump’s announcement aimed to prop up crypto prices amid a looming selloff.
Additionally, he mocked the exclusion of Trump-themed meme coins, calling the policy inconsistent. Hours later, Charles Hoskinson countered, highlighting XRP’s decade-long resilience. “XRP is a global standard with a robust community,” he argued. “The president made the right call.”
Hoskinson Defends XRP
Cardano’s Charles Hoskinson praised XRP’s infrastructure, noting its rapid transaction speeds and low costs. “XRP settles payments in seconds for fractions of a cent,” he said. Its ledger handles 1,500 transactions per second, outpacing Bitcoin and Ethereum.
Moreover, Hoskinson emphasised XRP’s use in cross-border banking, reducing reliance on pre-funded accounts. Despite Ripple’s ongoing SEC lawsuit, he called XRP “decentralised enough” for national reserves. Schiff warned of centralisation risks, citing Ripple’s control over 40 billion escrowed tokens.
SEC Legal Battle Looms Over XRP’s Future
XRP’s regulatory uncertainty remains a hurdle. The SEC’s 2020 lawsuit alleges Ripple sold XRP as an unregistered security. Although a 2023 ruling favoured Ripple on secondary sales, the case lingers. Critics argue Trump’s endorsement could sway regulatory outcomes.
Meanwhile, Trump’s ties to Ripple fuel speculation. Reports of a $5 million donation to his inauguration fund and meetings with CEO Brad Garlinghouse surfaced. Critics call this favouritism, undermining decentralised principles. Proponents, however, argue XRP’s U.S. roots align with Trump’s “America First” agenda.
“Bailout” Accusations Roil Crypto Sphere
Trump’s announcement triggered a 32% XRP price surge, with traders speculating on its reserve role. Yet Schiff warned of artificial pumps, comparing it to 2024’s $3.80 peak driven by “Trump hype.” Bitcoin also rallied, nearing $100,000, a threshold Schiff dubbed a “repayment” to crypto voters.
Analysts caution against politicising reserves. “Strategic holdings should prioritise stability, not campaign promises,” said Chainalysis Maddie Kennedy. XRP’s volatility, with swings from $0.50 to $3.80 in 18 months, raises reliability concerns compared to Bitcoin’s scarcity.
Crypto Community Split
XRP’s inclusion has divided crypto enthusiasts. Proponents applaud its real-world utility in remittances and liquidity. Critics, however, call it a “banker’s coin” antithetical to decentralisation. “Reserves should champion peer-to-peer assets, not corporate tokens,” argued Bitcoin advocate Max Keiser.
Meanwhile, Trump’s broader crypto agenda faces scrutiny. His pledge to “mine the last Bitcoin in America” clashes with environmental critiques. Yet for XRP holders, the reserve nod validates years of regulatory battles. As Ripple’s case progresses, its role in U.S. crypto policy remains a lightning rod.
XRP’s Reserve Role Tests Crypto’s Political Future
Trump’s strategic reserve plan underscores crypto’s growing political clout. While Bitcoin’s inclusion drew predictable debate, XRP’s spot highlights tensions between innovation and ideology. For now, the administration appears committed to blending established coins with enterprise-focused assets like XRP.
Nevertheless, Schiff’s critiques resonate with purists fearing centralised influence. As regulatory and market storms brew, XRP’s journey from courtroom to national reserve will shape crypto’s integration into mainstream finance and politics.
