XRP (XRP 0.42%) has been on an absolute tear lately. The cryptocurrency’s token price has rocketed 54% higher in 2025’s trading and is up more than 520% during the past year. On the heels of its recent gains, the token has become the world’s third most valuable cryptocurrency — trailing behind only Bitcoin and Ethereum.
The incredible rally for XRP was kicked off by Donald Trump’s election win last November. Investors are betting that the change in presidential administration will pave the way for resolution of long-standing legal issues surrounding the cryptocurrency, creating more bullish catalysts for the token.
With the token having already seen explosive gains, is it still a buy ahead of Trump’s return to the White House on Jan. 20?
Trump-related catalysts could send XRP even higher in 2025
The incoming Trump administration will likely offer an unprecedented level of support for the cryptocurrency industry. In addition to outlining plans to usher in a more favorable regulatory environment, the president-elect has said that he wants to make the U.S. the “crypto capital of the planet” and believes the digital assets are a financial instrument that can “unlock trillions in wealth.”
The change in presidential administrations has the potential to create positive valuation tailwinds for the cryptocurrency industry, and there are also indications that XRP could be an outsized beneficiary. For starters, it’s possible that the early months of Trump’s next presidency will coincide with the conclusion of the Securities and Exchange Commission’s lawsuit against Ripple Labs, the fintech company that created the XRP cryptocurrency.
In 2020, the SEC accused Ripple and two of its executives of selling XRP tokens as unregistered securities. Effectively, the agency alleged that Ripple had sold the tokens to raise funds, and that this action was functionally identical to selling ownership positions in a company through stock that had not gone through proper regulatory channels.
The case saw an initial judgment in 2023, and the presiding judge ordered Ripple to pay a fine of $125 million. But this penalty was far below the fine of $2 billion sought by the SEC and potentially set legal precedents that the agency disagreed with. It filed an appeals brief on Jan. 15 of this year in order to challenge the ruling.
But while the SEC under its current leadership has signaled that it would like to continue pursuing the case, there’s a good chance that the new Trump administration will bring about some significant changes in policy. In conjunction with Trump’s return to the White House, current SEC Chair Gary Gensler will be step down from his position.
Trump has selected Paul Atkins as Gensler’s replacement, and Atkins has generally signaled that he is a supporter of the crypto industry. Atkins is expected to create a more clearly defined regulatory backdrop for cryptocurrencies and shy away from pursuing legal action and enforcement in areas not specifically outlined by laws. If so, that would mark a significant departure from the SEC under Gensler and could pave the way for the agency to abandon the case against Ripple.
XRP could have an even more powerful bullish catalyst this year
In a message published on X on Jan. 7, Ripple Chief Executive Officer Brad Garlinghouse revealed that he and Chief Legal Officer Stuart Alderoty had dinner with Trump the previous evening. The X post featured a photo of the three smiling men together and stated that they had a great dinner — and that it was a “strong start to 2025.” Unsurprisingly, XRP investors took the meeting and social media post as a bullish development, and they haven’t had to wait long for more good news.
On Jan. 16, reports emerged that Trump is considering Ripple as an asset candidate for the U.S. strategic cryptocurrency reserve that could be created during his new term. Trump had previously outlined plans for the U.S. to increase its Bitcoin holdings as part of a reserve system similar to what’s currently in place with gold. The incoming president is now said to be considering other tokens, including XRP, Solana, and USD Coin, as part of the initiative.
XRP’s token price has already seen significant gains in conjunction with these reports, but the actual act of the U.S. government buying the token as part of a new reserve system could push its valuation much higher. This could happen thanks to both the purchasing action and rising bullish sentiment through an effective endorsement of the cryptocurrency.
With the new presidential administration likely to create a more favorable regulatory climate for crypto, a potential resolution to the SEC’s case against Ripple in sight, and the potential for XRP to be included in a U.S. cryptocurrency reserve, the token still looks like a worthwhile long-term buy ahead of Trump’s inauguration on Jan. 20.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.
