U.S. Government Considers XRP for National Reserve, Sparking Debate

The idea of the U.S. government holding XRP as part of a national reserve has gained traction in certain financial and cryptocurrency circles. This concept emerged following a private meeting involving Ripple executives, including CEO Brad Garlinghouse. Initially, there was significant speculation, with some industry observers estimating a 50% chance that XRP could be incorporated into a federal reserve strategy. However, this probability has since decreased to around 22%, although the discussion remains active.

Connor McLaughlin, a wealth manager and digital asset commentator, recently discussed this idea on a network. He believes that a national XRP reserve could be advantageous but cautioned that its impact would depend on the rationale behind it. McLaughlin noted that if the reserve is merely an investment allocation, it is one thing, but a higher-level partnership between Ripple and the U.S. government, driven by real liquidity use cases, would be where the true value lies. He also mentioned that while Bitcoin has started to find its place in institutional portfolios, expanding federal interest into other crypto assets like XRP has received mixed reactions.

McLaughlin added that while there was some momentum, internal disagreements may have stalled any serious effort. It is unclear whether the government paused to avoid controversy or if the idea was abandoned altogether. He suggested that long-term adoption trends may eventually force a reconsideration. Over time, these technologies will prove themselves, and if the U.S. misses the opportunity now, it could repeat the scenario with Bitcoin—initially ignored and then reluctantly accepted.

Some have proposed creative ways for the government to accumulate XRP. One theory involves the U.S. Treasury redirecting penalties or fines related to Ripple’s ongoing legal proceedings into XRP holdings for a strategic reserve. McLaughlin noted that while this is plausible, a more compelling future would be XRP being used in the financial system’s underlying infrastructure, not just held passively. The real excitement, he said, would come if tier-one banks start using XRP for real-time settlement and financial plumbing. That’s what would truly move the needle for the ecosystem.

The U.S. government has been considering the inclusion of XRP in its strategic reserve, sparking significant speculation and debate within the cryptocurrency community. Industry experts have highlighted the potential for XRP to become a key component of the U.S. government's digital asset portfolio. This development comes as the U.S. moves to create a Digital Asset Stockpile, marking a major shift toward crypto as a strategic economic tool. The decentralization of cryptocurrencies and their potential to revolutionize financial systems have made them an attractive option for governments looking to diversify their reserves.

The U.S. government's interest in XRP is part of a broader discussion around digital assets suitable for a potential U.S. crypto reserve. Ripple CEO Brad Garlinghouse has been a vocal advocate for the inclusion of XRP in such a reserve, disclosing that he holds XRP and Bitcoin. Garlinghouse's advocacy, along with the broader industry's push for regulatory clarity, has contributed to the growing momentum behind the idea of a U.S. strategic reserve that includes XRP.

The potential inclusion of XRP in the U.S. strategic reserve has been met with both enthusiasm and skepticism. Some industry experts have praised the move as a recognition of the growing importance of cryptocurrencies in the global economy, while others have criticized it as a form of preferential treatment for certain industry donors. The U.S. government's decision to include XRP in its strategic reserve could have significant implications for the cryptocurrency market, potentially leading to increased mainstream adoption and regulatory clarity.

The U.S. government's move to create a Digital Asset Stockpile and Bitcoin reserve marks a major shift toward crypto as a strategic economic tool. The inclusion of XRP in this reserve could pave the way for a spot XRP exchange-traded fund (ETF), further solidifying its position in the financial landscape. The U.S. government's actions have been seen as a significant step towards recognizing the potential of cryptocurrencies as a strategic asset, and the inclusion of XRP in the reserve could be a game-changer for the cryptocurrency market.