Summary
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Former President Trump reportedly felt manipulated after learning his public endorsement of XRP was significantly influenced by a lobbyist from Ballard Partners, a firm with undisclosed ties to Ripple Labs, causing him considerable anger.
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The lobbyist allegedly presented a pre-written statement to Trump at a Mar-a-Lago event without revealing Ripple’s connection to their firm, Ballard Partners, reportedly resulting in Trump barring the firm’s founder, Brian Ballard, from future involvement, though Ballard denied any wrongdoing.
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Shortly after the controversial endorsement, Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both to be funded by federally seized cryptocurrencies, with altcoins only being held if obtained through forfeiture.
Recent reports indicate that President Donald Trump expressed feelings of being “used” upon discovering that a public statement he made endorsing XRP was apparently influenced by a lobbyist connected to Ripple Labs.
The timing of this endorsement was sensitive, as the White House was reportedly organizing a significant cryptocurrency summit, leading to perceptions that the specific mention of XRP might constitute favoritism.
Origins of the Controversial XRP Endorsement
Earlier in March, Trump had surprised many in the cryptocurrency sphere by publicly naming XRP, along with Solana and Cardano, as potential components of a proposed United States crypto reserve.
New information suggests the former President may not have been fully aware of the circumstances surrounding this endorsement.
According to a Thursday revelation by Politico, the statement, which was designed to communicate Trump’s backing for a “Crypto Strategic Reserve,” was reportedly orchestrated by an individual employed by Ballard Partners.
This lobbying firm is known to have professional ties with Ripple Labs, the entity primarily associated with the XRP digital asset.
Allegations of Undisclosed Influence and Trump’s Reaction
It is alleged that the lobbyist in question, who was present at a donor event at Mar-a-Lago during the weekend the statement was publicized, persuaded Trump to release a pre-drafted message.
Critically, the lobbyist purportedly did not fully disclose the nature of Ballard Partners’ relationship with Ripple.
Sources suggest that Trump, who understood his statement to be a general endorsement of American innovation in the cryptocurrency sector, reacted with considerable anger and felt manipulated upon learning that Ripple was a client of Ballard Partners.
Following this revelation, Trump is said to have informed his aides that Brian Ballard, the founder of the lobbying firm and a long-standing fundraiser, was “not welcome in anything anymore.”
Consequently, White House personnel were reportedly directed to cease interactions with Ballard.
This incident has also led some cryptocurrency companies to discreetly voice concerns regarding the potential for undisclosed, or “backchannel,” influence on policy.
In response, Brian Ballard has denied any misconduct, asserting that neither he nor his team engaged in any misleading actions toward the then-President.
He refuted the allegations, highlighting his firm’s ongoing achievements across various sectors and stating that Ballard Partners consistently provides “results and effective advocacy” for its clientele.
Subsequent Establishment of National Crypto Reserves
Several days after the contentious endorsement, President Trump issued an executive order establishing a Strategic Bitcoin Reserve.
This order also initiated a Digital Asset Stockpile, with both initiatives to be capitalized using cryptocurrency assets confiscated through federal criminal and civil forfeiture actions.
Regarding the Digital Asset Stockpile, the government’s approach will not involve the active procurement of alternative cryptocurrencies (altcoins); instead, the stockpile will exclusively comprise assets obtained via forfeiture.
The Department of the Treasury has been tasked with the management of this digital asset repository and possesses the authority to liquidate these assets when deemed necessary.
Uncertainty Over XRP’s Inclusion and Official Clarification
The potential inclusion of XRP in this stockpile remains uncertain.
Its addition hinges on whether federal agencies declare their holdings of the asset to the Treasury Secretary by the stipulated disclosure deadline.
Notably, the executive order does not compel the public release of these submitted agency reports.
As a point of clarification from March, David Sacks, who served as the White House‘s advisor on cryptocurrency matters, stated that Trump’s specific mention of XRP, Solana, and Cardano was predicated on their ranking as top five digital assets by market capitalization at that particular time.
Also Read: President Donald Trump revealed the official meme coin on Solana
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