Trump Duped Into Endorsing XRP For Federal Reserve

President Donald Trump was reportedly manipulated into publicly endorsing XRP for inclusion in a U.S. strategic crypto reserve by a lobbyist connected to Ripple Labs, according to a report published on May 8. The incident, which occurred at Mar-a-Lago, involved a staffer from lobbying firm Ballard Partners repeatedly pressing the president to publish pre-drafted language promoting specific digital assets including XRP, Solana (SOL), and Cardano (ADA), as detailed in a Bitcoinist report.

After two initial rejections, Trump eventually handed the text to an aide, leading to his March 2 Truth Social post announcing plans for a “Crypto Strategic Reserve” that would include these specific cryptocurrencies. The revelation has sparked controversy within the crypto industry and raised questions about the influence of lobbying on the administration’s digital asset policies.

Presidential Backlash After Revelation

According to sources familiar with the incident, West Wing officials quickly realized that Ripple was a client of Ballard Partners, provoking immediate anger from President Trump. “He felt like he’d been used,” two officials familiar with the reaction told Cointelegraph, resulting in severe consequences for the lobbying firm’s access to the administration.

Staff instructions soon followed barring meetings with Ballard, though the firm’s founder insisted to Politico that talk of a freeze is exaggerated. Nevertheless, several of Ballard’s clients have reportedly approached other Trump allies to secure meetings, implying that the firm’s direct access has indeed been compromised in the aftermath of the incident.

Ripple’s Long-standing Trump Connections

The controversy comes against a backdrop of existing connections between Ripple and the Trump administration. The blockchain firm’s chief legal officer, Stuart Alderoty, donated more than $300,000 to fundraising and political action committees supporting Trump in the 2024 election, while Ripple contributed $5 million in XRP to Trump’s presidential inaugural fund.

Both Alderoty and CEO Brad Garlinghouse met with then-president-elect Trump in January and attended inauguration events. Additionally, Ripple has been a major contributor to Fairshake, a political action committee supporting pro-crypto candidates. These existing relationships raise questions about the extent of Ripple’s influence on the administration’s crypto policies.

Strategic Reserve Pivot to Bitcoin

Following the controversy, Trump moved quickly to clarify his position, releasing another Truth Social post stating: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!” This explicit endorsement of Bitcoin and Ethereum represented a significant shift in emphasis from the original post.

On March 6, the president signed an executive order establishing a federal “Digital Asset Stockpile,” which differs notably from the original reserve concept. The order creates a structure where Bitcoin is the only cryptocurrency authorized for federal purchase, while other digital assets like XRP can only be held or sold by the government if obtained through means such as criminal forfeitures.

Crypto Industry Reactions

The revelation has intensified divisions within the cryptocurrency industry, particularly between Bitcoin maximalists and supporters of alternative cryptocurrencies. Critics have pointed to the incident as validation of concerns about lobbying influence in shaping government crypto policy, while others have questioned whether any cryptocurrencies should be included in government reserves.

Despite the controversy, the price of XRP has not shown significant negative reaction to the news, trading at approximately $2.23 at the time of the report’s release. This stability suggests that market participants may view the development as having limited long-term impact on XRP’s value proposition or regulatory status.

Growing Scrutiny of Presidential Crypto Ties

The XRP endorsement controversy comes amid growing scrutiny of the Trump administration’s cryptocurrency connections, including the president’s involvement with his own branded token, which reportedly has generated substantial trading fees since its launch. Congressional Democrats have launched investigations into potential conflicts of interest related to these ventures.

The incident highlights the complex intersection of politics, lobbying, and cryptocurrency regulation that continues to shape the industry’s development. As the administration moves forward with its digital asset policies, questions remain about how these relationships will influence the regulatory landscape and which cryptocurrencies will ultimately benefit from government support.