XRP Controversy: Trump’s Crypto Reserve Move Sparks Backlash

In a surprising turn of events involving XRP, former U.S. President Donald Trump was reportedly misled into endorsing the token as part of a proposed national cryptocurrency reserve, igniting backlash and internal turmoil.

According to recent reports, a lobbyist closely tied to Ripple allegedly played a key role in convincing Trump to promote a “strategic crypto reserve” including XRP. The incident unfolded on March 2 when Trump published a post on his social media platform, announcing plans for a U.S. digital asset reserve that would feature XRP, along with Solana (SOL) and Cardano (ADA). The message, crafted by a staffer associated with lobbyist Brian Ballard, was intended to align with growing political interest in cryptocurrencies. However, Trump was reportedly unaware at the time that Ballard represented Ripple, the company behind XRP.

Shortly after the post went live, Trump discovered the connection and was said to be outraged. Sources familiar with the matter claim the former president felt manipulated and subsequently distanced himself from Ballard, expressing strong disapproval over the incident. His reaction reportedly included a statement indicating that Ballard was no longer welcome in Trump’s inner political circle.

This development adds to an ongoing narrative linking Ripple to Trump’s political activities. Notably, Stuart Alderoty, Ripple’s chief legal officer, made political donations exceeding $300,000 to pro-Trump organizations supporting his 2024 campaign. Both Alderoty and Ripple CEO Brad Garlinghouse were also present at events related to Trump’s inauguration in January, further highlighting the depth of Ripple’s political ties.

Ripple has long been active in lobbying and political funding. The company contributed $5 million worth of XRP to Trump’s previous inaugural efforts and stands among the top backers of Fairshake, a political action committee (PAC) that champions pro-cryptocurrency lawmakers. In a statement earlier this year, a Fairshake representative confirmed continued plans to fund campaigns during the 2026 midterm elections.

Trump Proceeds with Crypto Reserve Initiative

Despite the initial controversy, Trump appeared committed to pursuing the broader idea of a national crypto reserve. Just four days after his initial social media post, he signed an executive order aimed at creating a “Digital Asset Stockpile” on March 6. Though not explicitly naming XRP in the order, the decision confirmed Trump’s growing willingness to incorporate digital assets into U.S. economic policy frameworks. This executive move reflected his signature approach of gauging public response through social media before implementing official legislation.

At the time of the announcement, market response to the news appeared muted. XRP experienced a modest 5% uptick, reaching approximately $2.23. Analysts suggested the minor movement reflected broader market stability rather than a reaction to political developments.

Ripple has yet to issue an official statement addressing the reports. Observers speculate that the company is maintaining a low profile amid increasing scrutiny over political influence and lobbying strategies connected to Washington decision-makers.

The entire episode underscores the delicate intersection of cryptocurrency growth and political maneuvering. As XRP continues to evolve within the broader blockchain and decentralized finance space, its political associations may shape future policy decisions—as well as public perception regarding the integration of crypto in national economic regulation.

Related: Expert Advice: Sell XRP If You’re Confused

With political interests and digital currency innovation increasingly converging, the role of XRP and Ripple in shaping the future of national crypto strategies remains a closely-watched subject. The impact of lobbying, campaign donations, and prominent public endorsements could influence how blockchain adoption unfolds in governmental spheres.