Ripple: The Hidden Threat to a U.S. Bitcoin Reserve

In the latest twist in the saga of cryptocurrency policy in the United States, Ripple Labs (XRP) has found itself at the center of a heated debate over President Donald Trump’s newly signed executive order concerning digital assets. This order, signed on January 23, 2025, initiates the formation of a working group tasked with exploring the creation of a national digital asset stockpile, which has sparked controversy due to its omission of any specific reference to Bitcoin (BTC) — contrary to Trump’s earlier campaign promises of establishing a strategic Bitcoin reserve.

The absence of Bitcoin in the executive order has led to significant pushback from the Bitcoin community. Pierre Rochard, who holds the position of Vice President of Research at Riot Platforms, has publicly accused Ripple Labs of being the primary antagonist in this scenario, suggesting that their lobbying efforts are aimed at derailing the Strategic Bitcoin Reserve (SBR). Rochard’s comments on X underscore a belief that Ripple is not just protecting its own interests but also pushing for Central Bank Digital Currencies (CBDCs) that could leverage their technology platform, thereby diverting attention from Bitcoin.

However, Ripple CEO Brad Garlinghouse has offered a counter-narrative, arguing that their advocacy might actually facilitate the inclusion of a broader crypto reserve, one that could encompass Bitcoin as well. Garlinghouse’s stance suggests that a more inclusive approach to digital asset policy might benefit the entire crypto ecosystem, including Bitcoin.

The language of the executive order has been a particular point of contention. While it outlines a framework for a digital asset reserve, the lack of explicit mention of Bitcoin has disappointed many who expected a direct endorsement following Trump’s previous statements. Many in the crypto space have voiced their concerns on social platforms, emphasizing that the focus should solely be on Bitcoin due to its established dominance and security.

Despite these criticisms, there are perspectives like that of Dennis Porter from the Satoshi Action Fund, who supports the creation of a “Strategic Digital Asset Stockpile” by the working group led by David Sacks. Although Porter identifies as “Bitcoin only,” he advocates for using the term “digital asset” over specifying “Bitcoin” for strategic reasons. This approach, he argues, reduces political friction, maintains a technology-neutral stance, broadens the discussion around Bitcoin’s importance, and ultimately aims to secure the long-term viability of Bitcoin in national policy. By using this language, which has been effective in state-level legislation, the initiative could position the U.S. to become the world’s largest holder of Bitcoin.

Still, the debate seems to be further complicated by the practical implications of the executive order. The directive for the working group to consider assets seized by federal law enforcement for inclusion in the reserve suggests a broad interpretation of what constitutes a digital asset, potentially diluting the focus on Bitcoin as initially anticipated by its advocates.

This situation highlights the ongoing tension between different segments of the cryptocurrency community, where visions for policy can significantly diverge. While some see Ripple’s actions as undermining Bitcoin’s potential as a national reserve asset, others view the broader approach to digital assets as an opportunity for greater inclusivity and innovation in financial technology.

As the debate unfolds, the crypto community watches closely, knowing that the outcome could set precedents for how digital currencies are integrated into national policy, potentially affecting global crypto markets and the future of digital finance. The interplay of corporate influence, political strategy, and community advocacy will continue to shape the narrative around cryptocurrency in the U.S., with implications that extend far beyond the immediate policy decisions.

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