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XRP Surges 12% Ahead of FOMC Meeting, Ripple Pushes for U.S. Crypto Reserve Inclusion

Coin WorldTuesday, Jan 28, 2025 8:09 am ET

1min read

XRP, the native token of Ripple, has surged by 12% in the past 24 hours, leading the crypto market's rebound ahead of the Federal Open Market Committee (FOMC) meeting. This significant increase comes amidst ongoing debates surrounding the potential inclusion of XRP in a U.S. crypto reserve and the company's lobbying efforts to promote its token.

Ripple, the company behind XRP, has been vocal about its ambitions to position the token as a key component of a U.S. crypto strategic reserve. Ripple CEO Brad Garlinghouse has expressed optimism about the asset's potential inclusion, aligning the company's goals with the current administration's emphasis on promoting American innovations. Garlinghouse believes that incorporating assets like XRP alongside Bitcoin would be consistent with efforts to support U.S.-based companies and technologies.

However, industry leaders remain divided on the suitability of XRP for a U.S. crypto reserve. Ryan Selkis, founder of Messari, has been one of the most vocal critics, advocating for Bitcoin as the sole cryptocurrency fit for such a reserve. Selkis cites Bitcoin's decentralized nature, reliance on energy-backed mining, and dominant global position as critical factors. He 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, struck a more neutral tone, acknowledging Ripple's efforts while suggesting 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 Bitcoin initially dominating early discussions. 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.

A central point of contention is Ripple's substantial control over its native token, XRP. The company reportedly holds above 50% of the total

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