Key Takeaways
- Ripple Labs’ lawsuit with the U.S. SEC under the Biden administration struggled, leading to a price crash to $0.3.
- Trump’s pro-crypto administration favours U.S.-based digital assets, as XRP could gain a strong price boost with XRP’s strategic reserve.
- Favourable crypto regulation and institutional adoption could provide more room for XRP towards $10 or more highs.
The Ripple project has had strong ties with the U.S. regulatory from work which has impacted the price of Ripple ledger native token (XRP) as the price which was trading above $2 in the bull market of 2020 suffered major setback with the U.S Security and Exchange Commission (SEC) opening a legal case on this digital asset.
This legal case impacted the price projection of XRP for years as crypto exchanges were forced to delete XRP from their platform for trading as the price crashed towards a region of $0.35, creating much worry for many under the President Biden Administration.
While the regulation framework and crackdown on crypto assets by the U.S. SEC were in strong force at the time, creating much worry and fear for major crypto projects, things have gone from a fearful state to a strong conviction that the U.S. regulatory body and politics favour the crypto market as a whole, especially U.S. crypto assets, following the campaign of President Donald Trump, who showed strong advocacy for crypto before his campaign.
Let us examine some patterns that show how the price of XRP is indirectly correlated to U.S. politics and predictions ahead of May.
Ripple vs U.S. SEC Lawsuit
Ripple Labs has had a long-standing legal battle with the U.S. SEC authorities under the Biden Administration after this body filed a lawsuit in December 2020 against Ripple, insisting that it conducted an unregistered securities offering through the sale of XRP. This lawsuit affected the price of XRP as the crypto market reacted negatively to the news.
During Biden’s administration, this crackdown by the U.S. SEC chair, Gary Gensler, gained much influence as a result of his stance on crypto. This saw the price of XRP plummet to $0.35 over a long period as the lawsuit continued to be adjourned.
Ahead of the 2024 U.S. election, Gary Gensler announced his exit as U.S. SEC chair. This saw some price gain for XRP, with speculation coming out of a possible resolution from the court, as Ripple Labs won partially in the lawsuit.
The campaign by Donald Trump declaring his stance to make the U.S a home of Bitcoin and other digital assets, and a more robust pro-crypto administration, saw the likes of XRP gain much price prominence, rallying from a region of $0.65 to a high of $3.4 with over 600% within a short time.
Edward_Farina, a crypto analyst and lover of the XRP use case, has insisted that XRP could have been a victim of political theatre and expects its lawsuit to be resolved, which would boost the price to the upside.
XRP Adoption Beyond Politics
Following a partial win by Ripple Labs and the current Trump administration favouring crypto assets and the plan to include XRP into the U.S. strategic reserve, this has led to strong fundamentals around the XRP ecosystem and the approval of the Ripple stablecoin (RLUSD) pegged 1:1 to the U.S. fiat currency.
Banks and corporate financial institutions have also been looking to leverage the Ripple Ledger technology to provide a cross-border payment system with the help of blockchain technology, which provides a fast, cheap, secure platform that can handle high demands.
With the Ripple lawsuit coming to its close and a complete resolution out of court, there is high speculation of XRP spot ETF approval, which would boost adoption by other financial institutions looking to expose themselves to XRP with real-world use cases.
XRP Price Movement and Political Correlation
Source – XRP Price Chart From TradingView
Since the price of XRP has gained a boost from Trump’s pro-crypto administration, there is high speculation of a high of $5-10 or more before the end of 2025. The price of XRP has gained much attention in the last few months despite suffering a price crash from a high of $3.45 to a low of $2 before the price bounce.
While the price of XRP in the long term remains bullish, it has struggled under political circumstances, giving investors and traders a reason to pay attention to political developments that could affect its price to the upside.
