Ripple's Garlinghouse Pushes XRP for U.S. Crypto Reserve, Dividing Industry

Ripple's CEO, Brad Garlinghouse, has been at the forefront of a contentious debate within the cryptocurrency community, advocating for the inclusion of XRP in a potential U.S. crypto strategic reserve. Garlinghouse has expressed optimism about the asset's potential, aligning Ripple's goals with the current administration's emphasis on promoting American innovations. However, industry leaders remain deeply divided on the issue.

Ryan Selkis, founder of Messari, has been one of the most vocal critics of XRP's suitability for a U.S. crypto reserve. Selkis advocates for Bitcoin as the sole cryptocurrency fit for such a reserve, citing its decentralized nature, energy-backed mining, and dominant global position. He has also criticized Ripple's lobbying efforts, accusing the company of aggressively promoting the token despite concerns about its centralized distribution and the large volume of XRP held by Ripple.

Charles Hoskinson, founder of Cardano, has struck a more neutral tone. While acknowledging Ripple's efforts, he suggested that Bitcoin should be the primary focus for a government-backed crypto reserve. This cautious approach reflects the broader hesitation among industry leaders about moving beyond Bitcoin when considering digital assets for a strategic reserve.

The U.S. government has shown interest in exploring the feasibility of a digital asset reserve. A working group has been tasked with evaluating the concept, with early discussions initially dominated by Bitcoin. However, attention has recently shifted toward other assets, including XRP and Solana, particularly those marketed as "American-made" technologies. Ripple's lobbying efforts have drawn both support and criticism, with advocates arguing that including a diverse range of digital assets could strengthen the foundation of a U.S. crypto reserve. However, critics warn that prioritizing assets like XRP could undermine the initiative's credibility.

Ripple's substantial control over its native token, XRP, has been a central point of contention. The company reportedly holds above 50% of the total token supply, raising questions about its decentralization and suitability for a government reserve. Critics argue that this level of control creates potential conflicts of interest and undermines the decentralization principles often central to cryptocurrencies.

The debate highlights broader divisions within the crypto industry about the future of digital asset adoption in government frameworks. While Bitcoin remains the frontrunner due to its established track record and global recognition, Ripple's campaign to include XRP has brought alternative perspectives into