Ripple's CTO Clarifies XRP Holdings: Firm Can Act in Its Own Interest

Coin WorldWednesday, Mar 5, 2025 8:28 am ET

1min read

Ripple's CTO, David Schwartz, has recently clarified the company's stance on its XRP holdings, stating that Ripple is not obligated to hold XRP and that the firm should act in its own interest when selling the cryptocurrency. This statement comes amidst ongoing debates surrounding XRP's security status and Ripple's role in the XRP ecosystem.

Schwartz attributed the misconception that Ripple is obligated to hold XRP to the misrepresentation of XRP as a security. He emphasized that Ripple can, will, and should act in its own interest, responding to criticism regarding the firm's XRP sales. This clarification aligns with Ripple's previous statements, emphasizing that the company is not a central authority for XRP and that the cryptocurrency has a decentralized nature.

In recent market developments, XRP has been on a price surge, kicking out USDT from the third position in terms of market capitalization. Active XRP addresses have skyrocketed by a staggering 620%, indicating increased interest and activity in the XRP ecosystem. Despite this bullish momentum, XRP's price remains somewhat stuck between the 50 and 100-day moving averages, creating a tight range for both bulls and bears.

The price of XRP is currently trading around $2.50, with strong resistance located near the 50 EMA at $2.71. A break above this mark would indicate bullish strength and potentially trigger a move towards $3.00 and higher. On the downside, the 100 EMA serves as crucial support at about $2.30. If XRP fails to maintain this level, selling pressure may increase, pushing the price down to crucial psychological levels of $2.00 or even $1.82.

In the broader crypto market, Bitcoin has dropped below the $40,000 mark, nearing 'extreme fear' levels according to the Crypto Fear & Greed Index. Amidst this market sentiment, Ripple's CTO, David Schwartz, has defended XRP against claims of being a 'vaporware ponzi' scheme, highlighting the cryptocurrency's unique features and use cases.

Meanwhile, US lawmakers supported by the White House have proposed a Congressional Review Act to challenge the IRS's broker rules, which critics argue

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