XRP’s Legal Struggles Trump’s Support and Market Turmoil in 2025
Developed by Ripple Labs, XRP cryptocurrency has been navigating rough seas in 2025. Long caught in legal conflicts with the U.S. Securities and Exchange Commission (SEC), the digital asset recently experienced an astonishing $360 million sell-off, causing general market anxiety. Still, XRP has risen despite this storm, partly because of an improbable source: former U.S. President Donald Trump.
Trump’s sudden support of Cryptocurrencies, especially XRP, has given the price action and larger market attitude fresh life. For Ripple and the larger crypto community, this mix of political support, legal controversy, and active market activity has brought XRP back into focus at a crucial juncture.
Ripple Faces Legal Turmoil
Since 2020, when the commission claimed XRP was sold as an unregistered security, Ripple Labs has been in an extended legal standoff with the SEC. The issue has gone numerous ways, with a partial victory for Ripple upon a federal judge’s 2023 ruling on XRP sales on exchanges not constituting securities offers. Still, the battle is far from done.
A fresh turn surfaced recently when a federal judge said a civil lawsuit against Ripple CEO Brad Garlinghouse may go forward. The lawsuit says Garlinghouse misled investors in 2017 by saying he was “very long” on XRP while supposedly selling enormous quantities concurrently during interviews. This growth adds yet another level of legal pressure while Ripple works to extend its offerings worldwide.
The legal ambiguities have temporarily tempered institutional excitement for XRP. Nonetheless, Ripple keeps claiming that it is running inside legal limits and citing its expanding number of licenses in countries worldwide.
XRP Market Turmoil
Apart from its legal conflicts, XRP has experienced a significant setback in the form of a large sell-off. Over four days, more than 370 million XRP tokens—worth around $360 million—were dumped on the market, according to crypto analytics companies. Primarily due to crypto “whales,” or significant token holders, this aggressive sell-off resulted in a 16% price reduction over that period.
Panic selling set off a domino effect across the market, resulting in more falls and casting doubt on the coin’s near-term viability. Analysts said the selling was either a defensive reaction to the growing legal concerns or profit-taking after past gains.
Notwithstanding these losses, XRP discovered an unexpected lifeline to steady its price and inspire fresh hope.
Trump Boosts XRP
Donald Trump gave XRP a significant boost amid the legal drama and sell-off. During a public event connected to his presidential campaign, Trump declared intentions for a U.S. “Crypto Strategic Reserve” and voiced great support for blockchain innovation. He added the reserve would comprise significant cryptocurrencies, including Bitcoin, Ethereum, Solana, and, most importantly, XRP.
Trump’s support went beyond mere symbolism. He signalled a more crypto-friendly posture should he return to government and assigned Paul Atkins, a pro-crypto former SEC commissioner, to lead his advisory team on digital assets. Campaign insiders claim XRP’s inclusion in his strategic reserve results from increasing institutional acceptance and use in cross-border payments.
XRP jumped over 13%, momentarily trading above $3.15. Investors saw the political support as a significant improvement in regulatory tone, maybe opening the path for more general acceptance and clarity for Ripple’s American activities.
Ripple Expands Licensing
Reacting to legal issues and changing rules, Ripple has sped up its licensing initiatives. Recently, the corporation obtained money transmitter licenses in Texas and New York, the two largest U.S. states. Ripple is currently licensed in over 50 countries worldwide, including crypto-friendly areas like Singapore, Dubai, and Ireland.
These calculated actions set Ripple up to introduce more extensive payment options for retail and institutional clients. The company keeps emphasizing addressing practical payment issues by using XRP as a bridge currency to enable quicker and less expensive overseas transactions.
IRipple has also been in talks with many central institutions to investigate XRP’s possible digital currency interoperability—a step that would greatly increase its relevance in worldwide finance.
Final thoughts
Despite the recent volatility, XRP Markets remains far from bleak. Regulatory progress, strategic expansion, and unexpected political backing have helped the cryptocurrency weather an intense sell-off. While legal uncertainties still hang over Ripple, Trump’s vocal support and the potential for a friendlier regulatory environment could be pivotal.
XRP is again at a critical juncture as the crypto landscape continues evolving. Investors will watch closely as the court battles unfold and political winds shift in 2025. Whether XRP can maintain its rally or succumb to further legal and market pressures will depend mainly on the outcomes in Washington and the courts.
One thing is clear: XRP is no longer just a cryptocurrency—it’s becoming a central figure in the broader narrative of finance, politics, and the future of digital assets.
