Ripple Labs has made headlines on multiple fronts, from launching a new nonprofit focused on cryptocurrency education to addressing concerns over its ongoing sales of XRP tokens. The payments firm recently announced the National Cryptocurrency Association (NCA), a nonprofit aimed at educating the public about digital assets, with Ripple contributing $50 million in funding. Meanwhile, comments from Ripple’s Chief Technology Officer, David Schwartz, reaffirming the company’s right to sell XRP for operational purposes have sparked debate among investors. Ripple’s XRP Sales Spark Investor Concerns Amid CTO’s Blunt Remarks Ripple Labs’ right to sell XRP tokens for operational capital has become a heated topic after the company’s chief technology officer (CTO), David Schwartz, confirmed that the company is not obligated to act in investors’ interests. His remarks, coupled with recent discoveries of massive XRP reserves linked to Ripple co-founder Chris Larsen, have stirred uncertainty in the cryptocurrency market. The debate was ignited when Pierre Rochard, vice president of research at Riot Platforms, raised concerns about Ripple’s freedom to offload XRP tokens without obligation to token holders. In a March 5 post on X, Rochard wrote, “XRP isn’t a security because Ripple doesn’t actually owe you ‘utility’ or anything else.” “They are free to dump on you and you have no right to do anything about it other than join them in dumping XRP,” he warned, adding that investors should recognize they are “not investing in Ripple,” but rather receiving tokens “created out of thin air” with no guaranteed value. Rather than refuting Rochard’s claims, Ripple CTO David Schwartz—known by the online alias “JoelKatz”—surprised many by agreeing with the sentiment. He affirmed that Ripple has no obligation to XRP holders beyond its own business goals. “100% correct. IMO, Ripple can, will, and should act in its own interest,” Schwartz wrote. “You should not expect Ripple to act in your interest to the detriment of its own interest or those of its shareholders.” The blunt acknowledgment from a top executive has unsettled some investors, who fear that Ripple’s continued sales of XRP could exert downward pressure on the token’s price. Historically, large XRP sales by Ripple have sparked price declines, as increased token supply dilutes demand. Investor anxiety escalated further after blockchain investigator ZachXBT disclosed a previously dormant XRP wallet valued at over $7 billion. The massive holdings, potentially linked to Ripple co-founder Chris Larsen, have raised questions about the long-term intentions of early XRP stakeholders. “With the announcement of the US Crypto Reserve, here’s your reminder that XRP addresses activated by Chris Larsen still hold 2.7B+ XRP ($7.18B), and these addresses tied to him transferred $109M+ worth of XRP to exchanges in January 2025,” ZachXBT revealed in a March 3 Telegram post . While some XRP supporters believe Larsen may no longer have access to these funds—since most of the wallets have been inactive for over six years—others worry about the potential market impact if such a vast amount of XRP is sold. XRP’s Short-Lived Rally Amid Trump’s Crypto Reserve Proposal Despite the concerns surrounding Ripple’s XRP holdings, the token recently saw a price surge following news that US President Donald Trump had directed his Working Group on Digital Assets to include XRP, Cardano (ADA), and Solana (SOL) in a proposed US strategic crypto reserve, alongside Bitcoin. The announcement triggered a temporary rally in the altcoin market, with XRP climbing to a high of $2.99 on March 2. However, the enthusiasm quickly faded, with the token retreating to $2.50 at the time of writing. Market analysts remain cautious about the sustainability of the rally, citing the need for congressional approval before any US government crypto reserve can be established. Aurelie Barthere, a principal research analyst at blockchain analytics firm Nansen, noted that the process could be prolonged and complex. “I think constituting a reserve by buying new tokens is a complex process that will need Congress’s vote, so it will take time. I would be a bit wary of the sustainability of today’s move,” Barthere said. As Ripple continues to assert its right to sell XRP for operational purposes, investor sentiment appears divided. On one hand, Ripple’s ability to generate liquidity through token sales helps sustain its operations and fund ecosystem developments. On the other, persistent sell pressure from Ripple and early stakeholders risks undermining long-term investor confidence in XRP. With regulatory scrutiny still looming over Ripple’s legal battle with the US Securities and Exchange Commission (SEC), and questions surrounding the company’s influence over XRP’s supply, traders remain wary of future volatility. As the debate unfolds, the key takeaway from Schwartz’s comments is clear: Ripple will always act in its own interest. Whether that aligns with the interests of XRP holders is another matter entirely. Ripple Launches National Cryptocurrency Association With $50M Grant to Promote Crypto Education In related news, Ripple Labs has announced its involvement in launching a new nonprofit organization dedicated to educating the public about cryptocurrency’s role in empowering individuals and businesses. The National Cryptocurrency Association (NCA) aims to provide accessible information on crypto adoption and ensure Americans stay informed about developments in the sector. The announcement, made on March 5 via X by Ripple’s Chief Legal Officer Stuart Alderoty, revealed that he will serve as president of the nonprofit while continuing his legal duties at Ripple. Ripple CEO Brad Garlinghouse further disclosed that the blockchain payments firm would fund the NCA with an initial $50-million grant to support its educational initiatives. According to the NCA’s official website, the organization has been established to help Americans understand cryptocurrency by sharing real-world adoption stories. While the group did not explicitly state any plans to directly engage in politics, it emphasized the importance of keeping the public informed about upcoming changes in the crypto industry. Despite these claims, Ripple has recently become increasingly active in political contributions, particularly in the United States. The company contributed $45 million to Fairshake, a political action committee (PAC) focused on influencing voter sentiment in the 2024 election cycle. Alderoty also personally donated $300,000 to a committee backing Donald Trump, further fueling speculation about Ripple’s political involvement. Additionally, both Alderoty and Garlinghouse met Trump at his Mar-a-Lago residence in January and later attended his inauguration events in Washington, DC, as official guests. The NCA is registered as a 501(c)(4) organization, a classification under US law that allows unlimited corporate and personal donations while remaining exempt from donor disclosure requirements. These types of organizations are often used for lobbying, issue advocacy, and political engagement, raising questions about whether the NCA could eventually take on a more political role in the crypto industry. The timing of the NCA’s launch coincides with major developments in the US regulatory landscape regarding cryptocurrency firms. Under Trump’s administration, the SEC has ended several high-profile enforcement actions, including lawsuits against Coinbase, Cumberland DRW, and Consensys. However, Ripple remains in legal limbo as the SEC continues to pursue its appeal in a $125-million judgment against the firm. While many crypto-related cases have been dropped, Ripple’s legal battle remains unresolved, making its recent political engagements and the formation of the NCA even more significant. XRP’s Role in the National Crypto Stockpile Proposal As Ripple navigates its ongoing legal battle, its ties to the Trump administration continue to deepen. CEO Brad Garlinghouse confirmed his attendance at a March 7 crypto summit at the White House, where discussions on the future of digital assets will take place. Perhaps most notably, Trump announced that XRP would be one of five cryptocurrencies included in the proposed “national crypto stockpile.” While the proposal has drawn enthusiasm from XRP supporters, many legal experts question its feasibility and legality. Critics argue that Congress would need to approve any such reserve, and government involvement in selecting specific cryptocurrencies could raise concerns over favoritism and regulatory overreach. Ripple’s moves in the political and regulatory spheres suggest a shift from being a blockchain payments firm to a major crypto policy influencer. Through the National Cryptocurrency Association, the company is positioning itself as an advocate for crypto education and regulatory clarity in the US. With a $50-million funding boost, the NCA has the potential to become a significant voice in shaping public perception and regulatory frameworks for cryptocurrency. However, its political undertones, ties to Trump, and Ripple’s ongoing SEC battle ensure that the organization’s true intentions will remain a topic of intense debate in the months ahead. As Ripple continues to assert its influence over crypto policy and regulation, the impact of the NCA and its broader implications for the future of digital assets in the US will be closely watched.
