A new report from the American Bankruptcy Law Journal reveals how Trump’s approach to crypto regulation helped boost the value of XRP.
Written by Jessica G. McKinlay, an assistant professor at the University of Idaho College of Law, the report discusses how changes in political decisions helped the crypto scene, and why investors, especially those in XRP, are still feeling the effects.
Crypto Investors Deserve Better Protection
The report, spotlighted by crypto researcher SMQKE, focuses mainly on the legal side of the crypto market, especially what happens when exchanges like FTX go bankrupt. It pointed out that many investors discovered too late that they were not actually the legal owners of their crypto holdings.
Yes, the Trump administration “PAVED THE WAY FOR XRP TO CONTINUE TO INCREASE IN VALUE.”📈🔥💨
This is documented below.📝👇 pic.twitter.com/nRDLfhHSCb
— SMQKE (@SMQKEDQG) May 21, 2025
Instead, in court, the treatment they received was that of general unsecured creditors, essentially putting them at the back of the line. McKinlay argues that these investors deserve stronger protections.
She suggested classifying them as secured creditors or even full owners under updated laws like Article 12 of the Uniform Commercial Code. She also pushed for a national system that tracks crypto holdings and liens, making it easier to enforce rights and reduce fraud.
Trump Administration Helped XRP Price to Keep Climbing
While the report covered several topics, it also discussed specific assets like XRP. Importantly, the report linked XRP’s latest meteoric surge in value to the emergence of the Donald Trump administration.
On the campaign trail, Trump promised a clear and more favorable regulatory environment for crypto assets to thrive in the U.S.. He stressed that the focus would shift toward supporting innovation and reducing government interference.
As a result, his election bolstered investor confidence in XRP and other cryptocurrencies. This led to a massive rally, which XRP took advantage of. Specifically, XRP soared from $0.5 in November 2024 to $2.9 in December. CNBC ranked XRP as the biggest beneficiary of the Trump-led upsurge.
The report also highlighted the replacement of former SEC Chair Gary Gensler, who had been locked in a years-long legal fight with Ripple.
This further boosted XRP’s value, as the token rallied to a seven-year peak of $3.4 by mid-January. Notably, while XRP has faced a pullback since then, it still maintains a price above $2. Some believe XRP would continue to benefit from the Trump administration’s approach to regulation, possibly leading to further price appreciation.
Meanwhile, the report originally suggested that XRP operated on the “Ripple exchange,” which was a misconception. Notably, XRP runs on the XRP Ledger (XRPL), a public blockchain independent of Ripple.
Also, according to the report, XRP transactions usually confirm within seconds and cost far less to process compared to Bitcoin. It also indicated that XRP was pre-mined before launch. As a result, the asset does not rely on energy-hungry mining operations, making it unique.
Other Mentions
The report also takes a look at Bitcoin, calling it the most valuable and well-known cryptocurrency. It notes that Bitcoin reached an all-time high of over $100,000 during Trump’s inauguration, driven in part by investor optimism about looser regulations.
However, the report doesn’t ignore Bitcoin’s downsides, including its environmental impact and the growing concentration of mining power in a few hands.
Ethereum also received credit for its flexibility and usefulness beyond currency. The report explained how Ethereum supports smart contracts and NFTs and praises the network’s shift to a proof-of-stake model, which cuts energy use.
