In a surprising turn of events, former President Donald Trump was reportedly manipulated into promoting the use of the XRP token as part of a national cryptocurrency reserve. This incident, which unfolded recently, reveals intricate ties between Trump and Ripple Labs, raising questions about lobbying influences in the crypto space.
According to a detailed report, a lobbying employee associated with Ripple Labs crafted a social media post that Trump shared on March 2. This post announced his intention to include XRP, along with other cryptocurrencies like Solana (SOL) and Cardano (ADA), in the proposed US strategic crypto reserve. Following the announcement, Trump discovered that Ripple was a client of the lobbyist involved, leading to his fury. Sources close to Trump indicated that he felt used and stated, “He is not welcome in anything anymore,” referencing the lobbyist.
Before this controversy, Trump had established connections with Ripple Labs, as the company’s chief legal officer had notably contributed over $300,000 to political action committees supporting Trump’s 2024 campaign. Additionally, key figures from Ripple, including CEO Brad Garlinghouse, had met Trump before and during his inauguration, indicating a longstanding relationship with the former president.
As Trump moved forward with cryptocurrency talks shortly after the announcement, he swiftly signed an executive order on March 6, establishing a “Digital Asset Stockpile.” This swift action came just days after his social media post. Remarkably, despite the turmoil, the market response for XRP remained tepid, with prices hovering around $2.23, reflecting only a modest increase of approximately 5% within a 24-hour period.
While Ripple Labs has significantly supported Trump financially, contributing $5 million worth of XRP to his presidential inaugural fund, questions arise regarding potential conflicts of interest and the integrity of lobbying in the political arena. The implications of this incident are vast, hinting at deeper connections between cryptocurrency and politics as the landscape evolves.
These developments highlight the intertwining of politics and technology, particularly in the context of cryptocurrencies that have gained momentum like never before. As the 2024 elections approach, the potential impact of these relationships on regulatory frameworks and market dynamics will be closely monitored by investors and political analysts alike.
