Despite all the hype and buzz at the beginning of the year, XRP (XRP -2.43%) is only up 5% through the first half of 2025. But that could change over the next two months.
That's because a number of developments are now in the works that could send XRP much higher in the second half of the year. In fact, there are now three good reasons to buy XRP before the end of summer.
Regulatory clarity
If there is one cryptocurrency that could benefit from regulatory clarity, it's XRP. Ever since the start of the year, we've been hearing that a final resolution of the long-running case involving the Securities and Exchange Commission (SEC) and Ripple (the company behind the XRP token) would be coming "any day now."
In March, Ripple hinted that the SEC was finally going to drop its case. In June, Ripple announced that it planned to drop any future appeals. The SEC also hinted that it would be dropping all future appeals related to the case, but has not yet formally done so. There is still some final paperwork to be submitted. But the case should be wrapped up, once and for all, by the end of July.
Image source: Getty Images.
Regulatory clarity does not end there. There are two massively important pieces of crypto legislation that are now working their way through the U.S. Congress: the Genius Act and the Clarity Act. The Genius Act defines the rules of the road for stablecoins, while the Clarity Act provides a comprehensive regulatory structure for all digital assets, including cryptocurrencies.
Both pieces of legislation are important for XRP. The Genius Act is important because stablecoins have emerged as a potential new growth opportunity for the XRP blockchain. The Clarity Act is important because, until it's passed, cautious institutional investors are going to have reservations about investing in XRP. Both bills are expected to be ready for the signature of President Donald Trump by the time Congress goes on summer recess in August.
The rise of XRP treasury companies
Another important development is the recent appearance of XRP treasury companies. The first-ever XRP treasury company appeared in early June, when VivoPower International announced that it would be acquiring $120 million in XRP for its balance sheet. Then, just two weeks later, fellow microcap Trident Digital Tech Holdings announced that it would be adding $500 million in XRP to its balance sheet.
These XRP treasury companies are following the business model established by Strategy (MSTR 0.32%), the company formerly known as MicroStrategy. In just five years, Strategy has become the largest corporate Bitcoin (BTC -1.91%) holder in the world. Its total Bitcoin holdings are now worth a staggering $65 billion. The Bitcoin treasury company business model is simple yet powerful: Buy as much Bitcoin as you possibly can, as fast as you can, as cheaply as you can.
Right now, only a handful of relatively small companies have embraced the XRP treasury company model (which replaces Bitcoin with XRP). But I'm fully expecting that to change by the end of the summer. I'm predicting that one mid-size to large company will soon become known as the "MicroStrategy of XRP," due to its aggressive buying of XRP for its balance sheet.
New spot XRP ETFs
I've saved the best for last. That's because, as soon as everyone returns from summer vacation, the SEC is scheduled to make a decision on spot XRP ETFs. The final deadline for SEC approval is in mid-October, but a decision could come sooner than that.
Right now, Bloomberg thinks there's a 95% chance of the SEC approving a spot XRP ETF this year. The precedent is certainly there. At the end of June, the SEC approved a new crypto ETF from Grayscale that will hold XRP in addition to Bitcoin and Ethereum (ETH -4.05%). Both Bitcoin and Ethereum, of course, already have their own spot ETFs, so it may be just a matter of time before XRP gets its own fund as well.
Once new spot XRP ETFs are approved, institutional money might flood into XRP. That's especially the case if the new Clarity legislation is already in place. That way, well-meaning compliance lawyers won't be able to stop companies from investing in XRP. With the new legislation, the government is essentially telling companies: "Yes, it's OK to invest in XRP."
What happens after the end of summer?
This summer could result in the perfect storm for XRP. At the exact moment when it has been freed from its regulatory shackles (by virtue of the SEC dropping its case), Ripple will be able to launch its spot XRP ETFs. Meanwhile, pro-crypto euphoria stemming from the passage of major new crypto legislation should boost its overall business prospects.
At least, that's what XRP bulls are hoping will happen. They're hoping that XRP will soar in price, and potentially even reclaim its all-time high of $3.84 from seven years ago. But just remember: XRP has disappointed before, and if any of the three catalysts outlined above fail to materialize, XRP might still be trading around the $2 mark as we head into 2026.
