XRP News Today: Trump's Crypto Reserve Plan Sparks Controversy, Market Gains

In early March, former U.S. President Donald Trump announced the creation of a strategic crypto reserve, aiming to position the U.S. as a global leader in cryptocurrency. The announcement, made on his social media platform Truth Social, sparked controversy due to its perceived ties to Ripple, a prominent blockchain company.

The announcement identified XRP, Solana, and Cardano as the digital assets to be included in the cryptocurrency reserve, notably excluding Bitcoin and Ethereum. According to reports, the language used in the announcement was drafted by an employee of a lobbying firm with Ripple as one of its clients. Trump was reportedly unaware of the lobbying firm's involvement and felt manipulated upon learning about it, leading to his displeasure with Ripple and XRP.

The incident had significant repercussions for the head of the lobbying firm. His standing within Trump's political circles declined sharply, despite his previous reputation as a trusted insider and fundraiser. The firm, however, continued to expand its client base, securing over a hundred new contracts, including major corporations, and generating substantial revenue.

Ripple, while not controlling XRP, may have benefited from the perceived endorsement due to its connection to the asset. Ripple's CEO and Chief Legal Officer had met with Trump in January, further fueling this perception. The crypto market responded positively to Trump's original message, with the prices of XRP, Solana, and Cardano seeing noticeable gains. However, Ripple and the lobbying firm declined to comment on the matter.

Following the incident, Trump amended his position, indicating that the proposed reserve would include Bitcoin and Ethereum. Later that month, he signed an executive order establishing a U.S. Strategic Bitcoin Reserve, demonstrating his continued interest in digital assets. The incident highlighted the complexities and potential pitfalls of integrating cryptocurrency into national policy, as well as the influence of lobbying firms in shaping public announcements.