XRP saw a sharp price surge this week, climbing 16% in just 24 hours to hit a seven-year high of $3.20. The rally followed a New York Post report suggesting that Donald Trump might consider adding American cryptocurrencies like XRP to a national crypto reserve.
However, the excitement surrounding this speculation was soon clouded by rumours of a fallout between Trump and Ripple over past political donations.
How the Story Unfolded?
Ripple’s Chief Legal Officer, Stuart Alderoty, quickly dismissed these rumours, labelling them as “pure fiction” on social media. In a decisive statement, Alderoty said, “Completely made up. Wonder who’s behind this?”
His response sought to quash the narrative, which had begun spreading rapidly across online platforms and the crypto community.
The chain of events began when the New York Post published claims that Trump was considering including U.S.-based cryptocurrencies, including XRP, in a national crypto reserve.
The report triggered market excitement, propelling XRP trading volumes on major exchanges and driving the token to new heights.
However, scepticism soon emerged. According to a report by Unchained, the claims about Trump and XRP were likely untrue, and there was no direct evidence linking Trump’s administration to such plans.
Adding to the drama, rumours circulated suggesting that Trump carried resentment toward Ripple for allegedly supporting Kamala Harris during the election instead of backing his campaign.
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Did Ripple Support Harris?
Ripple co-founder Chris Larsen had indeed contributed significant funds to Harris’s campaign. However, Ripple’s broader support leaned Republican, with Alderoty personally donating over $300,000 to Trump’s campaign.
Ripple also invested in other Republican candidates, such as John Deaton, who opposed Senator Elizabeth Warren in Massachusetts.
Despite these realities, the speculation continued to grow, amplified by claims that Ripple executives might have seeded the rumours to drive market interest.
Sources close to the matter suggested that the New York Post report could have been influenced by Ripple Labs itself, as part of efforts to showcase XRP’s potential role in a diversified U.S. crypto reserve.
SEC Appeal Adds Complexity
While Ripple grappled with these rumours, the U.S. SEC added another layer of uncertainty. The SEC filed an appeal against Ripple Labs and its CEO, Brad Garlinghouse.
The appeal challenges Judge Analisa Torres’s 2023 ruling, which declared that XRP sales on trading platforms did not constitute investment contracts.
Ripple’s Strategic Position
Ripple has long been a key player in crypto lobbying, and the company’s efforts during the current presidential election cycle have been particularly visible.
Senior Director of Communications Susan Hendrick confirmed that Ripple executives encouraged Trump to consider diversifying a potential crypto reserve beyond Bitcoin.
Alderoty’s strong denial of the Trump-Ripple fallout rumours highlights the importance of addressing misinformation in the fast-moving crypto space. While the market celebrated XRP’s price surge, the ensuing rumours and SEC appeal created an atmosphere of uncertainty.