XRP (CRYPTO: XRP) has been on an incredibly hot streak lately. The cryptocurrency’s token price has risen 54% year to date, far outperforming the gain of roughly 9% for Bitcoin and roughly 3% for Ethereum. Even more impressive, XRP is up 450.5% over the last year.
Following this rally, XRP now has a market capitalization of roughly $185 billion and ranks as the world’s third-largest cryptocurrency by valuation. And while the token will likely continue to see volatile swings in the near term, the stage could be set for it to rocket even higher thanks to shifting political dynamics.
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With President-elect Donald Trump set to take office on Jan. 20, the cryptocurrency market appears poised to enter a period of unprecedented governmental support. Even more striking, Trump may have recently signaled a particularly strong outlook for XRP in 2025 and beyond.
The Trump administration could pave the way for Ripple to keep soaring
On Jan. 15, the Securities and Exchange Commission (SEC) faced a deadline to submit an appeals brief in the securities violations case it brought against Ripple Labs, the company that created and maintains the XRP cryptocurrency. The token’s price soared in the lead-up to the deadline, with some investors betting that the SEC would not bother to pursue the case.
The lawsuit was brought by the SEC in 2020 and alleged that Ripple had offered XRP as an unregistered security to raise funds from investors. In other words, the agency believed that Ripple Labs was selling XRP to investors as if it were a stock that granted holders an ownership position in the business, and the agency believed that this security offering did not go through required approval channels.
In 2023, a ruling on the case was issued, and Ripple Labs was ordered to pay a fine of $125 million. That was far below the $2 billion penalty that had been sought by the SEC. As a result, the agency said that it would be appealing the ruling.
The SEC came down to the wire with submitting its appeals brief in the case, but it did ultimately submit the document before the deadline. However, while the case against Ripple and XRP is still being pursued, President-elect Trump may have recently signaled that investors in the cryptocurrency shouldn’t worry.
On Jan. 6, Ripple CEO Brad Garlinghouse and its chief legal officer, Stuart Alderoty, had dinner with Trump. The next day, Garlinghouse posted a message on X describing it as a “great dinner” and a “strong start to 2025” along with a photo of the three men smiling together and Trump giving a thumbs-up sign.
While this doesn’t necessarily mean that XRP will continue to soar or that the legal issues surrounding Ripple will evaporate, the dinner and message from Garlinghouse look significant in light of changes set to take place with the incoming administration.
Signaling the potential for another explosive catalyst, Trump is reportedly considering XRP as a component of a strategic crypto reserve that will be founded during his administration. If so, U.S. purchases of the token could send its price even higher.
XRP is entering a new political world in 2025
In conjunction with Trump coming back to the White House, current SEC Chairman Gary Gensler will be stepping down. He is slated to be replaced by Paul Atkins, Trump’s pick for the role and someone who has been a vocal supporter of the cryptocurrency industry.
So although the SEC is currently still pursuing its appeals case against Ripple, Atkins will have the option of charting a different course and dropping the case once he assumes leadership of the agency. Given that Trump has signaled support for the crypto industry and said that he wants to make the U.S. “the crypto capital of the planet,” it’s not a big stretch to think that the SEC under Atkins will drop its legal challenges against Ripple. If so, that could be one substantial catalyst for XRP amid an increasingly bullish backdrop for crypto.
Besides Trump’s meetings with the Ripple leadership and the selection of Atkins to head up the SEC, the incoming president will also create a new White House position: the artificial intelligence and cryptocurrency czar.
Trump has named entrepreneur and venture capitalist David Sacks as the first person to serve in the role, and the appointment appears to be another bullish indicator for XRP and the broader crypto industry. Sacks is viewed as a supporter of crypto and has investments in the space.
With President-elect Trump signaling support for the crypto industry on multiple levels, the stage could be set for XRP investors to see strong performance in 2025.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
