XRP's Role in the U.S. Digital Asset Stockpile

These developments come in the wake of the U.S. Securities and Exchange Commission (SEC) dismissing its lawsuit against Ripple, marking a major milestone

The U.S. Securities and Exchange Commission’s (SEC) dismissal of its lawsuit against Ripple is a major milestone for both the company and the XRP token. As the case comes to a close, speculation is swirling about what lies ahead for Ripple, especially with regards to an XRP ETF and the cryptocurrency’s role in the U.S. digital asset strategy.

During a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse shed light on these developments and discussed the broader implications for the cryptocurrency industry.

XRP’s Role in the U.S. Digital Asset Stockpile

Garlinghouse touched upon President Donald Trump’s recent executive order, which established a Strategic Bitcoin Reserve and a broader digital asset stockpile. While XRP was not directly mentioned in the official order, Trump’s statements on Truth Social indicated that it will also be included in the U.S. digital asset reserve.

“XRP was named by the President of Truth Social. (He said) there’s gonna be a Bitcoin strategic reserve and a crypto stockpile that will include things like XRP,” Garlinghouse stated.

The Ripple CEO suggested that the U.S. government could acquire XRP for its reserve through seized digital assets or by purchasing it directly from exchanges. However, the specifics of how the stockpile will be funded and maintained remain unclear.

Garlinghouse highlighted that XRP’s rapidly growing institutional adoption, evident in partnerships with major financial institutions and increasing liquidity in offshore markets, strengthens its case for inclusion in the U.S. digital asset strategy.

Moreover, he pointed out that the SEC is already familiar with XRP, having no issues with its use in cross-border payments and other financial transactions. This factor could be beneficial in securing swift approval for an XRP ETF.

SEC clarifies XRP’s role as vital for state financial transactions, government payments, and interbank liquidity in the U.S. reserve strategy. Source: James Miller via X

XRP ETF on the Horizon

With regulatory hurdles now largely behind Ripple, Garlinghouse is optimistic about the approval of an XRP ETF by the second half of 2025. He also added that more than ten firms, including Bitwise and Franklin Templeton, have already filed with the SEC before.

“I have immense belief in the ETFs,” Garlinghouse said, referencing the XRP exchange-traded products’ success around the world.

It could radically improve investor demand and access by launching an XRP ETF in the U.S., in the footsteps of Bitcoin and Ethereum ETFs.

But market commentators believe the SEC’s decision to dismiss its case against Ripple will likely accelerate the approval of ETH ETFs.

The commission will likely address pending requests by May 2025 with speculation of over one XRP ETF to be approved by May 22.

Ripple CEO Brad Garlinghouse expects an XRP ETF by 2025. Source: Amelie via X

XRP Surges in Market Rankings

Amid growing anticipation for an ETF and a more favorable regulatory environment, XRP has experienced a sharp price rally. Over the past 24 hours, XRP surged 11% to surpass $2.51, cementing its position as the third-largest cryptocurrency by market capitalization, only trailing Bitcoin (BTC) and Ethereum (ETH).

XRP was trading at around $2.42 at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

The increased institutional interest in XRP is evident in the strong inflows into offshore-based XRP ETPs, even as other crypto investment products are seeing outflows. This trend underscores a shift in market sentiment as regulatory pressure on XRP continues to ease.

Ripple’s Future Outlook

Beyond ETF approvals and potential U.S. reserve inclusion, Ripple is exploring broader opportunities in the digital asset space. When asked about a possible Ripple Labs initial public offering (IPO), Garlinghouse did not rule out the possibility but clarified that it is not an immediate priority. “Something is possible; it isn’t a huge priority,” he noted.

Also, Ripple has been actively engaging with U.S. lawmakers and regulators to foster a more favorable environment for cryptocurrency innovation. Garlinghouse highlighted that under the Trump administration, the crypto industry has seen a notable shift in reception, with increased dialogue between policymakers and industry leaders.

“In the past, we couldn’t meet anyone at the White House. Now, we are welcomed. This change shows a broad acceptance of the Ripple market,” Garlinghouse remarked.