Delving into the world of cryptocurrency, there’s a lot of chatter and speculation over the recent executive order signed by US President Donald Trump, which creates a dedicated working group for crypto regulation. This order also paves the way for a potential “digital asset strategic reserve.” Amidst this development, a fiery contention has sparked surrounding Ripple, a major player in the crypto industry. Critics claim that Ripple is actively lobbying against the establishment of a strategic reserve primarily focused on Bitcoin.
The Contention Around Ripple’s Stance on the Bitcoin Reserve
Pierre Rochard, a well-known early adopter and Vice President of Research at Riot Platforms, expressed his concern over Ripple’s alleged antipathy towards the idea of a Strategic Bitcoin Reserve (SBR) right before the executive order was signed. Rochard, in a statement on X, identified Ripple and its crypto asset XRP as the primary hurdle standing in the SBR’s way.
Rochard expressed that Ripple/XRP are pouring millions of dollars into lobbying campaigns to block the realization of the SBR. He accused Ripple of previously attacking Bitcoin mining initiatives under the Biden administration, attributing their aggressive tactics to a desire to promote Central Bank Digital Currencies (CBDCs) based on their platform.
Ripple Responds to Accusations
Ripple’s CEO, Brad Garlinghouse, responded to these allegations, arguing that Ripple’s efforts are aligning with the current administration’s support for U.S.-based tech companies and directly aiding the possibility of forming a crypto strategic reserve that includes Bitcoin.
Rochard didn’t stop at that, he went further to question Garlinghouse’s personal investment in XRP and insinuated a potential conflict of interest in his advocacy. This led to a back-and-forth that ultimately saw Rochard reasserting his claim that Ripple is opposed to a BTC-centric reserve.
Ripple’s Alleged Anti-Bitcoin Agenda Unveiled
Further fueling the controversy, Rochard cited an article from CNBC titled “Ripple’s Anti-Bitcoin Campaign To Promote CBDCs.” The article shed light on Ripple co-founder Chris Larsen’s funding of environmental campaigns, particularly Greenpeace USA’s “Change the Code,” which aims to alter Bitcoin’s proof-of-work protocol to lessen its environmental impact.
Agreeing with Rochard’s viewpoint, Ryan Selkis, founder of cryptocurrency research firm Messari, deemed Ripple’s efforts to include XRP in a crypto strategic reserve misguided. He passionately described Ripple’s activities as “toxic,” highlighting that only Bitcoin, as an energy-adjacent commodity, fits the reserve’s purpose.
FAQs
Why is Ripple being accused of lobbying against a Bitcoin strategic reserve?
Ripple is allegedly pouring significant funding into lobbying campaigns to dissuade the establishment of a strategic reserve solely focused on Bitcoin. Critics argue Ripple’s actions are primarily aimed at promoting CBDCs based on their own platform.
How has Ripple responded to the allegations?
Ripple’s CEO, Brad Garlinghouse, has refuted these accusations, asserting that their actions are increasing the likelihood of a crypto strategic reserve, including Bitcoin, being established in line with the current administration’s policies.
Does Ripple have a track record of opposing Bitcoin?
According to critics, Ripple’s co-founder Chris Larsen has financially backed campaigns aiming to modify Bitcoin’s proof-of-work protocol for environmental reasons, which opponents argue is a veiled effort to undermine Bitcoin.
What is the proposed ‘crypto strategic reserve’?
The proposed ‘crypto strategic reserve’ is a concept introduced in a recent executive order by US President Donald Trump. This order creates a working group to regulate digital assets and potentially establish a reserve of strategic digital assets, including Bitcoin and possibly other tokens.
