Report: Trump “Tricked” Into Backing XRP
President Donald Trump was reportedly manipulated by lobbyists with ties to Ripple Labs into promoting XRP for inclusion in the national cryptocurrency reserve, sparking questions about industry influence on White House cryptocurrency policies.
A new Politico report reveals that a longtime lobbying ally may have exploited the president’s enthusiasm for cryptocurrencies, leading to controversy over the administration’s strategic reserve plans and exposing tensions between industry players seeking favorable treatment.
Lobbyist Allegedly Fed Trump Social Media Language
According to a bombshell Politico report published May 8, President Trump was reportedly “tricked” into promoting XRP’s inclusion in his proposed strategic cryptocurrency reserve by a lobbyist with direct ties to Ripple Labs, the company behind the token.
The report indicates that an employee of pro-Trump lobbyist Brian Ballard provided the president with text for a social media post recommending the inclusion of specific cryptocurrencies in a national reserve, according to Cointelegraph.
On March 2, Trump announced on Truth Social that his planned cryptocurrency reserve would include XRP, Solana (SOL), and Cardano (ADA), later clarifying that Bitcoin and Ethereum would “obviously” be included as well. The announcement sent prices of all five cryptocurrencies soaring, with XRP surging 33% and Cardano skyrocketing more than 60%, as reported by CNBC.
Presidential Wrath After Discovery
The Politico report claims that Trump became furious upon discovering that Ripple was one of Ballard’s clients, feeling that he had been manipulated into promoting a specific token that would benefit the lobbyist’s client.
“He is not welcome in anything anymore,” Trump reportedly said of Ballard after learning of the connection, according to sources familiar with the incident cited by Politico.
The incident has apparently created a rift between Trump and Ballard, a longtime fundraiser and influential lobbyist who has maintained close ties to the president since his first term in office. The fallout highlights the complex relationships between the White House, lobbyists, and the cryptocurrency industry as the administration shapes regulatory policy.
Ripple’s Extensive Connections to Trump Administration
The alleged lobbying incident follows a pattern of significant financial support from Ripple and its executives to Trump and affiliated political organizations during the 2024 election cycle.
Ripple’s Chief Legal Officer Stuart Alderoty contributed over $300,000 to fundraising and political action committees supporting Trump’s presidential campaign. Both Alderoty and Ripple CEO Brad Garlinghouse met with Trump in January before his inauguration and attended inauguration events.
Additionally, Ripple donated $5 million worth of XRP to Trump’s presidential inaugural fund and has been a major contributor to Fairshake, a political action committee supporting pro-crypto candidates, according to Cointelegraph.
Evolution of the Crypto Reserve Plan
Despite the reported deception regarding XRP, Trump moved forward with his crypto reserve plans. On March 6, just four days after his Truth Social post, Trump signed an executive order establishing a “Digital Asset Stockpile” as a first step toward creating a national cryptocurrency reserve.
The order created a Strategic Bitcoin Reserve to be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings, according to the White House fact sheet.
However, after facing criticism from bitcoin maximalists and economic advisors, Trump subsequently narrowed the plan to focus exclusively on bitcoin rather than including other cryptocurrencies, though the fate of the other tokens in the stockpile remains unclear.
Market Reaction and Current Status
XRP’s price has shown minimal reaction to the Politico report, trading at approximately $2.23 with a 5% increase over the previous 24 hours at the time of the report’s publication. The token had previously benefited from Trump’s March announcement before settling into its current trading range.
The administration’s cryptocurrency policy continues to evolve, with bitcoin taking center stage in the Strategic Reserve. Meanwhile, the President’s Working Group on digital assets is expected to deliver its final recommendations in July, which may provide more clarity on how other cryptocurrencies like XRP might be handled by federal agencies.
Industry Implications and Response
The incident has raised questions about the influence of cryptocurrency industry players on government policy. Some critics argue that the close ties between Ripple executives and the administration represent potential conflicts of interest that could undermine objective policymaking.
Coinbase CEO Brian Armstrong, who has also been an active political donor, expressed his preference for a Bitcoin-only approach to the strategic reserve, stating on social media that “Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold,” as reported by NPR.
Neither Ripple nor its executives have publicly commented on the Politico report’s allegations as of publication time. The White House has also not issued an official statement regarding the alleged deception or any changes to its cryptocurrency strategic reserve plans.
