In a bold call for diversification, Ripple CEO Brad Garlinghouse is advocating for a U.S. strategic crypto reserve that encompasses more than just one token. This comes on the heels of President Trump announcing his administration will evaluate creating a national digital asset stockpile, an idea he backed leading up to the November elections.
A Multichain World
Garlinghouse, who owns XRP, BTC, ETH and others himself, believes we live in a multichain world. He has long advocated for a level playing field instead of promoting one token over another.
“If a govt digital asset reserve is created – I believe it should be representative of the industry, not just one token (whether it be BTC, XRP or anything else),” Garlinghouse said on X (formerly Twitter).
– Brad Garlinghouse, Ripple CEO
This stance puts him at odds with Bitcoin maximalists who view BTC as the only deserving candidate for a potential national reserve. Currently, traders on decentralized betting platform Polymarket only see a 17% chance of Trump greenlighting the Bitcoin reserve project in his first 100 days.
Pushing Back on Maximalism
Garlinghouse minced no words in his criticism of crypto maximalism, calling it “the enemy of progress.” He expressed gladness at seeing fewer people ascribing to what he considers an outdated and misinformed way of thinking.
This philosophical debate has real implications for Ripple, which uses the XRP token to facilitate cross-border payments and remittances. XRP took a sharp tumble on the news of a potential Bitcoin-only reserve before recovering to around $3.09.
The Case for Diversification
There are compelling arguments on both sides, but Garlinghouse’s view aligns with modern portfolio theory. Just as a smart investor wouldn’t put all their money in one stock, a forward-thinking nation may not want to bet everything on a single cryptocurrency.
Bitcoin’s dominance has been steadily eroding as Ethereum, XRP, and other alts gain traction. Institutions are increasingly holding a basket of crypto assets. Even nation states like El Salvador, the first to adopt Bitcoin as legal tender, have hinted at diversifying with altcoin bonds.
Regulatory Implications
If the U.S. does move forward with a crypto reserve, the decision of which assets to include could have far-reaching effects. It would send a powerful signal about which projects are seen as legitimate and stable in the eyes of regulators.
Inclusion in the national “risk-free asset” stockpile could unleash a tidal wave of institutional adoption and reel in massive sums to those chosen projects. A diversified approach, as Garlinghouse advocates, could spread this effect across the industry.
A Pivotal Moment
As the Trump administration weighs this momentous decision, the crypto world watches with bated breath. Will Bitcoin’s first-mover advantage reign supreme? Or will a more diversified approach reflect our multichain reality?
In many ways, this is a pivotal moment that could shape the crypto economy for decades to come. Garlinghouse’s advocacy for a diversified reserve is more than just self-interest – it’s a vision for an interconnected ecosystem with room for Bitcoin, XRP, and everything in between.
Only time will tell which path the powers that be will take. But one thing is certain: the crypto industry’s future has never been more fascinating – or consequential. Buckle up and hold your coins close, this roller coaster ride is just getting started!
