XRP Soars Amid Political Shifts and SEC Legal Battles

WASHINGTON, D.C. — XRP, the cryptocurrency associated with Ripple Labs, has surged by 54% year-to-date, significantly outperforming Bitcoin and Ethereum. With a market capitalization of $185 billion, XRP now ranks as the world’s third-largest cryptocurrency, fueled by shifting political dynamics and a potential shift in regulatory enforcement under the incoming Trump administration.

The cryptocurrency’s rally comes as President-elect Donald Trump prepares to take office on Jan. 20, 2025, signaling a potentially favorable environment for digital assets. Trump has expressed support for the crypto industry, aiming to make the U.S. “the crypto capital of the planet.” This sentiment was further underscored by a Jan. 6 dinner between Trump, Ripple CEO Brad Garlinghouse, and Chief Legal Officer Stuart Alderoty, which Garlinghouse described as a “strong start to 2025.”

XRP’s price surge also coincides with a critical legal battle between Ripple and the Securities and Exchange Commission (SEC). The SEC filed a lawsuit in 2020, alleging that Ripple sold XRP as an unregistered security. In 2023, Ripple was ordered to pay a $125 million fine, far less than the $2 billion penalty initially sought by the SEC. The agency has since appealed the ruling, but the case remains unresolved.

Adding to the optimism, Trump has reportedly considered including XRP in a strategic crypto reserve, which could further boost its value. Additionally, current SEC Chairman Gary Gensler is set to be replaced by Paul Atkins, a vocal supporter of the cryptocurrency industry. This change in leadership could lead to the SEC dropping its case against Ripple, providing a significant catalyst for XRP.

Further bolstering the bullish outlook, Trump has appointed David Sacks as the first artificial intelligence and cryptocurrency czar. Sacks, a venture capitalist with investments in the crypto space, is expected to advocate for favorable policies for the industry.

Despite the ongoing legal challenges, XRP’s price has surged to $3.26 as of Jan. 20, 2025, nearing its all-time high of $3.40 set in 2018. Ripple’s holdings of XRP, now valued at $136 billion, have also seen a dramatic increase since the November 2024 election. The company holds 4.44 billion XRP and controls another 39 billion in escrow.

As the crypto market braces for potential regulatory shifts, XRP investors are optimistic about the token’s future. “The stage is set for XRP to see strong performance in 2025,” said one industry analyst. “With political support and potential legal resolutions, the outlook is increasingly bullish.”