As anticipation builds in the cryptocurrency community, the focal point of conversation is the volatile price trajectory of Ripple’s XRP. This comes in the wake of President Donald Trump’s suggestion that it could become part of the national strategic reserve.
An Executive Order signed by the US President earlier this week has given birth to a strategic Bitcoin reserve and a national stockpile of digital assets, as reported by CryptoPotato.
David Sachs, the administration’s AI and crypto leader, stated:
“The Executive Order sets up a U.S. Digital Asset Stockpile, comprising of digital assets other than bitcoin seized in criminal or civil proceedings. No extra assets will be purchased for the Stockpile beyond those secured through forfeiture proceedings. The Stockpile’s objective is responsible management of the government’s digital assets under the Treasury Department.”
Immediately post the announcement, many altcoins experienced a significant drop, wiping out previous gains. This could be attributed to the Executive Order, which didn’t bring anything unexpected to the table and offered no tangible benefits for these assets, as the US Government won’t spend money to purchase them.
Altcoins like XRP and ADA have been under scrutiny, with speculations that their respective companies’ contributions to Trump’s presidential election campaign could have influenced the announcement. However, the fading of the initial hype and the dying down of this catalyst have led some to fear that XRP’s price might falter, despite its remarkable increase of nearly 300% in the past year.
Yet, other catalysts are in play. Ripple Labs is currently engaged in a significant legal dispute with the US Securities and Exchange Commission over XRP’s classification as a security. It seems, for now, Ripple Labs has the advantage.
Recent developments from the White House’s Crypto Summit are worth noting. During the summit, President Trump advised, “Never sell your Bitcoin”.
Treasury Secretary Scott Bessent confirmed the end of the regulatory crackdown on digital assets, which could bode well for XRP’s future price. The SEC has also dropped several major cases against significant crypto companies without any further enforcement actions. If Ripple Labs follows this trend, XRP’s price could witness another substantial rally.
