Crypto Coin News: The Rumor Mill on XRP and HBAR in the U.S. Reserve

Here's the scoop. The crypto community is buzzing with the idea that XRP and HBAR might be in line to join a U.S. national reserve. But before you get too excited, Charles Hoskinson, the founder of Cardano, stepped in to put out the flames. Let's break down the latest news on cryptocurrency and see what's really going on.
The Concept of National Crypto Reserves
The idea of national cryptocurrency reserves is one that has been floated around for a while. We're talking about countries holding significant amounts of digital currencies to potentially stabilize their economies and offer some protection against traditional market swings. Sounds great, right? But who knows if it's even feasible.
The XRP and HBAR Rumors
Now, the rumors began when a Hedera community member claimed that XRP and HBAR would be included in a national crypto reserve under Donald Trump’s administration. The chatter kicked off after Shawn (@oroogle) made claims about the president-elect’s team working on plans to include these coins in a reserve that would also feature Bitcoin. They even suggested that these coins would be labeled “American Commodities,” meant to bolster U.S. cryptocurrency innovation.
It didn't stop there. The claims went on to say that Hedera and Ripple technologies would be integrated into American election and financial systems. One of the more spicy claims included a supposed quote from Eric Trump saying his dad would eliminate capital gains taxes on cryptocurrencies developed in the U.S.
To add to the credibility of the claims, Trump has been known for his support of cryptocurrencies. He recently nominated a pro-crypto successor to Gary Gensler, the SEC chair who is not known for his love of crypto.
But then, in comes Charles Hoskinson, who shot down the claims in no uncertain terms, saying any reserve plans would only include Bitcoin.
"This isn't accurate. The reserve is only for Bitcoin" — Charles Hoskinson (@IOHK_Charles) December 18, 2024
This left the crypto community divided. Some thought it was good that someone was putting out correct information, while others speculated about his motives since Cardano was not part of the rumor.
The skepticism didn’t end there. BitMEX co-founder Arthur Hayes published an analysis arguing that the government has other priorities, particularly funding social programs, and that a national Bitcoin reserve is unlikely.
He also warned of increased volatility in crypto markets, especially around the impending presidential inauguration in January 2025. The optimism surrounding Trump’s perceived crypto-friendliness could lead to some shaky market moments.
But here's the kicker. If rumors are true that Trump wants to cut capital gains taxes on U.S.-based crypto currencies, the market may still end up in a better place even if the Bitcoin reserve is never realized.
The Influence of Key Figures in Crypto Development
Key figures in crypto development can have a massive impact on market sentiment and regulatory direction. Leaders in business and politics can shape how cryptocurrencies are perceived and regulated. For instance, Trump has expressed his support for crypto, vowing to ease regulations and even create a U.S. Bitcoin reserve.
Influential investors and entrepreneurs, like Mark Cuban and Kevin O'Leary, can also sway public opinion and investor confidence based on their views and investments.
Senators like Cynthia Lummis also play a role in garnering bipartisan support for clear regulations, which can help integrate crypto into mainstream finance.
The Impact of Tax Policies on Crypto Markets
Tax policies can significantly impact the cryptocurrency market. Countries that offer tax exemptions or favorable tax treatments, such as the Cayman Islands, El Salvador, and the UAE, attract more crypto investors and businesses. This could lead to crypto hubs and stimulate local economies.
But the patchwork of tax rules can create a tricky situation. Some countries have low or no taxes, while others hit hard. This could incentivize tax arbitrage, where businesses or individuals relocate to places with friendlier tax policies.
Countries with favorable tax policies may also see economic growth as they draw in foreign capital and local economic activity.
The Role of Misinformation in Crypto Volatility
Misinformation can cause wild swings in crypto markets. A study published on SSRN found that media coverage, whether related or unrelated to fundamentals, can drive volatility. The study pointed out that the sheer volume of news can destabilize nascent markets like crypto.
Gavin Brown, a financial technology professor at the University of Liverpool, also highlighted the market's vulnerability to misinformation. For instance, a fake report that Walmart was going to accept Litecoin caused a lot of price movement. The lack of regulatory oversight means that sentiment can drive prices more than fundamentals.
A research paper on arXiv focused on the consequences of online financial misinformation. Misinformation can lead to extreme price movements and uninformed investment choices. It can also result in market instability and investor losses, potentially damaging trust in financial systems.
Summary: The Latest News About Cryptocurrency
In summary, while the thought of XRP and HBAR being included in a national crypto reserve could have significant market implications, the clarification that only Bitcoin is being considered means this rumor isn't part of the actual plans of the Trump administration. Influential figures, tax policies, and misinformation all play crucial roles in shaping the cryptocurrency market.
Disclaimer
Quadratic Accelerator is a DeFi-native token accelerator that helps projects launch their token economies. These articles are intended for informational and educational purposes only and should not be construed as investment advice. Innerly is a news aggregation partner for the content presented here.