USDXRP Soars to New ATH As Trump Administration Eyes Crypto Strategic Reserve
XRP Price Soars to Seven-Year High Following the News
President-elect Donald Trump’s administration is making waves in the crypto world with reports of a potential strategic reserve featuring U.S.-based cryptocurrencies, including USD Coin (USDC), Solana (SOL), and XRP, while excluding Bitcoin. This marks a shift from Trump’s earlier pledge at the Bitcoin 2024 conference to establish a national Bitcoin reserve of 1 million BTC, intended for long-term holding.
Ripple CEO Brad Garlinghouse recently dined with Trump, fueling speculation about a more favorable regulatory environment for digital assets under the new administration. However, the proposal has drawn sharp criticism. Mike Dudas, co-founder of The Block, dismissed the idea of a Solana reserve as “stupid,” while Bitinning CEO Kashif Raza cautioned against prioritizing volatile assets like Solana and XRP over Bitcoin’s stability and market dominance.
The regulatory spotlight has also turned to Ripple as the SEC, on January 15, 2025, filed an appeal challenging a 2023 court decision that exempted secondary market XRP transactions from being classified as securities. Ripple CLO Stuart Alderoty denounced the SEC’s move as a “waste of taxpayer money,” underscoring his confidence in a regulatory shift under the incoming administration.
Crypto-friendly Paul Atkins, Trump’s nominee for SEC chair, is expected to spearhead these changes, potentially easing the enforcement-heavy approach of outgoing SEC Chair Gary Gensler. Gensler, who has consistently expressed skepticism about the crypto sector, reiterated his view that Bitcoin is akin to gold—a speculative asset—and highlighted the uncertain future of over 15,000 cryptocurrencies lacking compliance and utility.
Ripple’s ongoing legal battle has not deterred XRP’s impressive market performance. On January 16, 2025, XRP surged past $3 for the first time in seven years, marking a staggering 455% increase over the past quarter. XRP has also set a new all-time high of $3.4, surpassing its 2018 peak. The rally is fueled by multiple factors, including heightened anticipation of a spot XRP ETF approval.
Companies like Bitwise and WisdomTree have submitted applications, bolstering investor confidence. XRP futures open interest reached an all-time high of $7.7 billion, signaling robust market activity. Positive funding rates for XRP perpetual futures, hovering at 0.01% per 8-hour cycle, further highlight long-term bullish sentiment.
RippleNet’s growing adoption among financial institutions and expectations of regulatory clarity have strengthened XRP’s position. Analysts predict sustained institutional interest if Ripple successfully resolves its legal issues with the SEC.
Ryan Lee of Bitget attributed XRP’s rally to these legal and regulatory improvements, while Nicolai Søndergaard of Nansen noted Ripple’s proactive policy engagement, including recent discussions at Mar-a-Lago, as a signal of progress. However, market volatility and the rise of competing blockchain technologies present ongoing challenges, emphasizing the need for innovation to secure XRP’s long-term relevance.
As the crypto sector braces for regulatory shifts, XRP’s performance underscores the market’s adaptability and optimism. Ripple’s leadership remains steadfast, betting on a friendlier regulatory landscape under the Trump administration, which could set the stage for broader adoption and a redefined market narrative.
This article has been refined and enhanced by ChatGPT.
