Attorney Jeremy Hogan recently shared his thoughts on the possibility of including XRP in the U.S. strategic reserve. His comments highlight a different perspective from typical discussions within the cryptocurrency community, focusing on how the federal government might assess digital assets in a broader economic and geopolitical context.
Government vs. Crypto Community Perspectives
Hogan pointed out that most discussions about XRP in the cryptocurrency space focus on technical and governance-related factors such as decentralization and validator selection. He argues that while these aspects are important within the crypto industry, they may not be the primary concerns of the U.S. government when deciding to hold an asset in reserve. A strategic reserve is typically composed of assets the government believes are necessary to maintain stability and national security. Historically, reserves have included commodities like gold and oil, which serve as economic safeguards in times of crisis. Hogan suggests that if the U.S. government were to hold XRP, the decision would likely be based on its perceived strategic value rather than its technical attributes as a blockchain-based asset.
Potential Geopolitical and Economic Considerations
Hogan raises the possibility that the U.S. government has greater insight into geopolitical and economic trends than the average market participant. While cryptocurrency investors analyze digital assets based on public data, government agencies have access to classified intelligence and long-term economic models that could inform their decisions. If the government were to accumulate XRP, it could be as a hedge against certain financial contingencies. This might include the potential decline of the U.S. dollar’s dominance in international trade, the increasing digitization of global finance, or the emergence of alternative financial systems outside of U.S. control. Hogan does not claim whether the government is considering such a move. He only suggested that its decision-making process would likely be based on factors beyond those commonly debated within the crypto space.
Government Control and Historical Precedents
A common argument against XRP’s inclusion in a strategic reserve is the perception that Ripple, the company associated with its development, has significant influence over its ecosystem. Hogan addresses this concern by pointing out that if the U.S. government saw Ripple’s role as a risk, it could take action to neutralize it. He references historical precedents in which the federal government exerted control over private assets during a crisis. During World War II, the government took control of private companies to support the war effort. In 1933, the U.S. confiscated privately held gold to stabilize the financial system. Hogan suggests that if XRP were deemed strategically important, the government could take similar actions, such as seizing XRP from Ripple’s escrow holdings or exerting control over the company itself. While there is no official indication that the U.S. government is considering XRP for a strategic reserve, Hogan’s analysis presents a thought-provoking argument about how digital assets might be evaluated at the highest levels of policy and strategy.
While there is currently no official decision on including XRP in a strategic reserve, the discussed aspects shed light on how digital assets might potentially be evaluated at the governmental level.
