Donald Trump’s meme token has made him a crypto billionaire
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Since 4 p.m. yesterday, the price of XRP (CRYPTO: XRP) is trading 7.4% higher, as of 3 p.m. ET today. There are several reasons the token may be rising, including bullish sentiment in the crypto sector, and more positive news regarding the Securities and Exchange Commission’s (SEC’s) previous lawsuit against Ripple, the company behind XRP.
XRP and the SEC about to settle
Major market indexes and many cryptocurrencies rallied today, as the market clawed back some of the losses from Friday after Israel attacked nuclear facilities and military sites in Iran.
XRP also seems to be benefiting from news in recent days regarding a settlement between the SEC and Ripple. Once President Donald Trump began his second term, the SEC began to drop major lawsuits against crypto firms due to the Trump administration’s pro-crypto stance. In 2020, the SEC sued Ripple and its founders for allegedly selling XRP as an unregistered security in 2013, a case that had broad ramifications for cryptocurrencies because it could have set precedent on the SEC’s regulatory jurisdiction over the sector.
The SEC earlier this year announced it was dropping an appeal in the case, but prior to that, a federal judge had ruled that Ripple would need to pay a $125 million fine to the SEC. However, both sides recently submitted a letter to release those funds in escrow, requesting that only $50 million will be sent to the SEC, with $75 million transferred back to Ripple.
Solid momentum, but still volatile
With the four-plus-year legal battle with the SEC now finished, XRP and Ripple have a lot to look forward to including a much better regulatory regime, Ripple’s expansion of its cross-border capabilities and business, and the eventual launch of spot XRP exchange-traded funds (ETFs).
However, XRP has already enjoyed strong gains since Trump got elected and continues to be very volatile, so I’d keep positions smaller and more speculative for now.
Bram Berkowitz has positions in XRP. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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