In a shocking turn of events, US President Donald Trump was reportedly tricked into promoting $XRP , the native token of Ripple Labs, as part of his plans for a national cryptocurrency reserve. According to a May 8 Politico report, Trump was manipulated by a lobbyist tied to Ripple Labs into making the announcement.¹

The incident unfolded when an employee of pro-Trump lobbyist Brian Ballard handed Trump a pre-drafted social media post recommending the creation of a US strategic crypto reserve that would include XRP, Solana $SOL (SOL), and Cardano (ADA). Unbeknownst to Trump, Ripple was one of Ballard's clients, and the president only discovered this after posting the message on his social media platform on March 2.

Trump's reaction was swift and severe, with the president reportedly stating, "He is not welcome in anything anymore," in reference to Ballard. This incident highlights the complex web of connections between Trump, Ripple, and other key players in the crypto space.

Trump's Ties to Ripple

It's worth noting that Trump had existing connections to Ripple before the XRP announcement. Stuart Alderoty, Ripple's chief legal officer, donated over $300,000 to fundraising and political action committees supporting Trump in the 2024 election. Additionally, Alderoty and Ripple CEO Brad Garlinghouse met with Trump in January and attended inauguration events.

Ripple also made a significant donation of $5 million worth of XRP to Trump's presidential inaugural fund and has been a major contributor to Fairshake, a political action committee (PAC) that supports "pro-crypto" candidates through media buys.

The Aftermath

Despite the controversy surrounding the XRP announcement, Trump moved forward with his plans for a crypto reserve. On March 6, the president signed an executive order creating a "Digital Asset Stockpile". The price of XRP did not significantly react to the May 8 report, closing at $2.23 with a 5% increase in the previous 24 hours.

As the crypto community continues to grapple with the implications of Trump's actions, one thing is clear: the intersection of politics and cryptocurrency is complex and fraught with potential conflicts of interest.

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