Emily Walker
Ripple’s Influence on the Proposed Bitcoin Reserve
On January 23, after President Donald Trump issued an executive order aimed at cryptocurrencies, a lively discussion ignited on social media. This order focuses on regulating digital assets and examining the potential for a “digital asset strategic reserve.” While Bitcoin isn’t explicitly mentioned, the directive seeks to enhance U.S. prominence in digital financial technologies while prohibiting the creation of Central Bank Digital Currencies (CBDCs).
Is Ripple Opposing a Bitcoin Reserve?
Just prior to the executive order’s release, Pierre Rochard, the Vice President of Research at Riot Platforms, made a statement on social media, labeling Ripple/XRP as the primary hindrance to the Strategic Bitcoin Reserve (SBR).
He claimed: “The real barrier for the Strategic Bitcoin Reserve isn’t the Federal Reserve, the Treasury, banks, or even Elizabeth Warren. It’s Ripple/XRP. They are actively lobbying against it by spending millions on politicians, aiming to derail the initiative. They similarly targeted Bitcoin mining during the Biden administration. Clearly, they want to safeguard their marketing strategies and advocate for CBDCs linked to their platform.”
Rochard’s assertions suggest that Ripple intends to counter a Bitcoin-only reserve in favor of a more inclusive “crypto reserve” that would incorporate XRP and potentially other cryptocurrencies. He also raised concerns about Ripple’s lobbying tactics, pointing to co-founder Chris Larsen’s financial support for environmental movements that challenge Bitcoin’s mining practices.
In reply, Ripple CEO Brad Garlinghouse claimed on social media that their actions actually bolster the chances of having a crypto strategic reserve that includes Bitcoin, contesting Rochard’s perspective. He stated, “Unless you ignore the fundamental principles of the President’s campaign, which actively encourages support for American companies and technologies, our efforts are actually INCREASING the likelihood of a crypto strategic reserve.”
The dialogue heated up when Rochard probed Garlinghouse about his personal XRP investments, implying a possible conflict of interest. He asked, “Brad, have you ever actually bought XRP? Or just sold? Yes/no, don’t need details, but I’m curious since you’re suggesting the government purchase XRP.”
Garlinghouse did not respond directly, but Rochard reiterated that Ripple is definitively opposing a Bitcoin-centered reserve: “For anyone uncertain about Ripple/XRP’s lobbying against the Strategic Bitcoin Reserve, here’s your evidence. They seek to derail it with unrelated ‘crypto’ distractions. There are countless altcoins that could be considered ‘Made in the USA,’ which offers no substantial strategy.”
Rochard also shared a video where Garlinghouse supported a comprehensive crypto reserve rather than solely a Bitcoin one: “From the horse’s mouth: Ripple/XRP is against a Strategic Bitcoin Reserve, advocating for a ‘Diversified Crypto Reserve’ instead. This is their agenda in Washington, backed by significant financial contributions to politicians.”
He further supported his claims by citing a CNBC article titled “Ripple’s Anti-Bitcoin Campaign To Promote CBDCs,” which outlines co-founder Chris Larsen’s funding of the Greenpeace USA initiative “Change the Code.” This campaign, started in March 2022, aimed to alter Bitcoin’s proof-of-work protocol under the pretext of addressing environmental concerns, funded by a $5 million donation from Larsen.
Ryan Selkis, founder of cryptocurrency research firm Messari, expressed agreement with Rochard’s viewpoint, criticizing Ripple’s lobbying to include XRP in a strategic reserve: “Brad’s response reveals a lot. Ripple seems to be pushing to include XRP in the ‘crypto strategic reserve,’ even though only Bitcoin, as a commodity linked to energy, would be sensible in such a context. I’ve warned the Trump administration about Ripple for a while now. They are toxic.”
As of the latest update, Bitcoin was trading at $105,012.