XRP (XRP 0.09%) is surging in Tuesday's trading. As of 11:45 a.m. ET, the cryptocurrency's price was up by 8.6% over the previous 24 hours. Meanwhile, Bitcoin was up 2.6%, and Ethereum was up 2.5%.
CRYPTO: XRP
Key Data Points
XRP was gaining ground following the Senate's confirmation vote for Scott Bessent as Treasury secretary for the Trump administration Monday. Bessent was confirmed for the role by a 68-to-29 vote, and investors are betting that he'll help promote policies that are beneficial for the crypto market.
A pro-crypto Treasury secretary
XRP sold off sharply on Sunday and Monday due to concerns related to DeepSeek's R1 artificial intelligence (AI) model and the Federal Reserve's expected approach to interest rates for 2025, but the token is bouncing back. In addition to investors buying the cryptocurrency on the dip, the token is also getting a significant boost from Bessent's confirmation.
Bessent has been supportive of the cryptocurrency and was already set to be working on the crypto advisory group that President Trump created through an executive order last week. Bessent and the other members of the group aim to create a clear regulatory framework for cryptocurrencies and limit the potential for legal issues in cases where rules have not been clearly outlined. He will be the top financial advisor within the Trump administration, and some investors are hoping that he will help create a bullish environment for XRP and other cryptocurrencies.
What comes next for XRP?
With President Trump issuing executive orders, key cabinet positions being filled, and new policy initiatives being put forward, the landscape for the crypto industry has seen some rapid shifts this month. In general, things seem to be moving in favorable directions for XRP.
Notably, President Trump's son Eric reportedly floated a policy proposal that would see XRP and other U.S.-originated cryptocurrencies become exempt from capital gains taxes. Bessent could help push that policy along, and XRP's token price could wind up seeing big gains if such a tax standard were to be adopted.
Even if capital gains taxes for XRP aren't suspended, it looks like the token could see other significant benefits in conjunction with the new Trump administration. Trump is reportedly considering XRP for inclusion in a proposed national digital asset reserve. With a change in leadership in leadership at the Securities and Exchange Commission, it's also possible that a securities violations case against Ripple Labs (the creator of the XRP token) will be dropped.
