XRP vs. BTC: The Battle for Inclusion in the New Administration's Crypto Plans

The correlation between tech and crypto was evident on Monday, as cryptocurrencies experienced a sympathy meltdown following a crash in tech stocks.

A massive sell-off in tech stocks on Monday, triggered by news that Chinese start-up DeepSeek’s AI tool could rival its US counterparts at a fraction of the cost, also saw cryptocurrencies experience a sympathy meltdown.

The sell-off was unfortunate for third-largest crypto Ripple (XRP), coming on the same day as the company announced it had secured MTLs (Money Transmitter Licenses) in New York and Texas. The licenses are part of Ripple’s strategy to expand its domestic presence in the U.S., an effort that has been aided by the new crypto-friendly Trump administration.

The MTLs will allow Ripple Payments customers to use a licensed version of its cross-border payments service, with Ripple handling transactions on behalf of its clients. Both New York and Texas have seen strong demand for compliant, real-time global payment services from banks and cryptocurrency companies, according to Ripple. The latest licenses bring Ripple and its subsidiaries’ total global MTLs to over 55, with 33 of those in U.S. states.

Among other crypto developments, Ripple has also been seeking inclusion in the new administration’s crypto plans and is eager to play a role in “the creation of a strategic national digital assets stockpile”—a component of the digital asset executive order introduced by Trump.

That, however, has not sat well with some Bitcoin (BTC) proponents. Ripple has long faced criticism for not being a true cryptocurrency in the sense that its semi-centralized blockchain gives Ripple a strong influence over the way XRP is distributed.

Riot Platforms (NASDAQ:RIOT) VP of Research Pierre Rochard went so far as to say that it is not the Fed nor banks but rather Ripple that is the “biggest obstacle for the Strategic Bitcoin Reserve,” citing Ripple’s deep political lobbying efforts and its active role in developing central bank digital currencies (CBDCs). He also slammed Ripple for what he sees as its centralization, arguing that the control exercised by a few figures and the XRP Foundation runs counter to the decentralized principles championed by Bitcoin advocates.

Meanwhile, Ripple CEO Brad Garlinghouse has actively defended the company’s role, asserting that his efforts are “actually increasing the likelihood of a crypto strategic reserve (which includes bitcoin) happening.”

As the cryptocurrency space continues to evolve, such conflicts highlight the contrasting priorities and visions of its participants. The tension between XRP and Bitcoin underscores the ever-changing and diverse nature of the crypto landscape.