XRP, the third-largest cryptocurrency, rose 10% in 24 hours, breaking the $3 mark for the first time since 2018 and climbing to around $3.35 on Thursday. This surge brings it closer to its all-time high.
XRP rises past $3 amid hopes for Trump’s crypto reserve
The rally is attributed to expectations that the upcoming Trump administration will enact a crypto-friendly regulatory framework. Patrick Liou, principal of institutional sales at crypto exchange Gemini, noted that discussions have emerged about the administration’s openness to a reserve backed by U.S. crypto companies, which includes tokens like Ripple’s XRP.
A New York Post article reported that Trump is considering an “America-first strategic reserve” prioritizing U.S. digital assets such as Solana, USD Coin, and Ripple. If realized, such a reserve would enhance XRP’s status as a store of value. However, the credibility of this report remains unverified and is based on anonymous sources.
Other factors contributing to the rise in XRP’s price include speculation regarding the approval of XRP exchange-traded funds by the SEC, as indicated by Ripple president Monica Long in a January 7 statement. Investors also believe that pending SEC lawsuits related to Ripple and XRP might be resolved favorably under Trump.
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David Duong, head of institutional research at Coinbase, remarked on the changing regulatory climate, stating that Ripple representatives seem to be getting closer to the new administration. Ripple CEO Brad Garlinghouse’s meeting with the President-elect on January 7 has further fueled investor interest in XRP, as it indicates potential influence on policy discussions.
Since breaking the $3 threshold, XRP’s price movements could align with projections of its all-time high, which remains debatable across exchanges; Binance reports it at $3.84, while CoinGecko places it at $3.40.
Trump is said to explore including U.S.-developed digital currencies like XRP and Solana in his proposed national crypto reserve, according to the New York Post. This aligns with his campaign commitment to establishing a Bitcoin reserve and promoting the U.S. digital economy.
The inclusion of cryptocurrencies in a national reserve reflects an effort to support American innovation and aligns with Trump’s “America-first” strategy, which focuses on supporting products developed domestically. However, some insiders warn that such diversification could detract from Bitcoin’s dominance as a foundational digital currency in U.S. policy.
Industry reactions have been mixed, with advocates for cryptocurrencies like Solana and XRP celebrating potential U.S. support, while skeptics, like David Bailey from Bitcoin Magazine, have dismissed reports as unsubstantiated. Alexander Grieve from Paradigm emphasized the need for confirmation from Trump’s administration before drawing conclusions.
XRP’s notable price increase followed the New York Post’s claims regarding Trump’s interest in including American cryptocurrencies like XRP in a reserve. However, this excitement faced challenges from rumors suggesting fallout between Trump and Ripple linked to past political donations. Ripple’s Chief Legal Officer, Stuart Alderoty, labeled these rumors as baseless, asserting that they are “pure fiction.”
Despite Ripple co-founder Chris Larsen’s contributions to support Kamala Harris, the company has predominantly backed Republican candidates, with Alderoty donating over $300,000 to Trump’s campaign. Ripple has engaged in extensive lobbying efforts in the current election cycle, with Garlinghouse advocating for bipartisan support for crypto innovation.
The initial interest in XRP’s inclusion in a government-backed reserve arose from speculation that the Trump administration might diversify assets by incorporating digital currencies. Garlinghouse and Alderoty had a dinner meeting with Trump on January 6, which led to increased anticipation surrounding potential policy shifts favoring Ripple.
Although no official changes have been confirmed, the shared photo of the meeting has contributed to soaring XRP prices, marking a seven-year high.
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Featured image credit: Ripple
