How Ripple’s Stablecoin Could Reshape U.S. Financial Strategy Amid Market Turmoil

Ripple is making waves in the financial world! Last Friday, a high-profile crypto summit at the White House revealed a game-changing development: the U.S. government is showing keen interest in Ripple’s stablecoin, RLUSD. But why?

According to Ripple CEO Brad Garlinghouse, a power shift is unfolding behind the scenes, positioning Ripple at the heart of U.S. financial policy. At the same time, XRP could be on the verge of a major breakout to $5—provided a crucial support level holds firm.

Garlinghouse’s Revelation: RLUSD as Trump’s Masterstroke Against a Bond Market Meltdown

During the summit, Garlinghouse spotlighted RLUSD, emphasizing its backing by U.S. Treasury bonds—a key factor that caught the Trump administration’s attention. The context is alarming: for months, China and other global powers have been offloading U.S. bonds, a trend set to accelerate due to Trump’s renewed trade wars.

As demand for U.S. debt declines, yields could skyrocket, threatening economic stability. Enter RLUSD: the more of this stablecoin is issued, the more U.S. Treasuries are required to back it, boosting demand and effectively managing interest rates. This strategic maneuver could make RLUSD a cornerstone of U.S. financial policy, with the White House eager to ensure its global success.

Garlinghouse also underscored XRP’s evolving role as a “digital reserve currency”, stating, “The U.S. is finally realizing that blockchain strengthens its financial sovereignty.”

SEC Settlement in XRP? Trump’s Administration Might Approve It!

Legal expert Jeremy Hogan believes the U.S. government could allow Ripple to settle its $125 million SEC fine in XRP. Why? The proposed crypto stockpile would reportedly include XRP, and such an agreement would ramp up political pressure on the SEC to resolve the case in Ripple’s favor.

In the long run, Hogan argues, a U.S. government-held XRP reserve could significantly boost trust in the token—much like gold reserves backing the dollar.

The Critical Support Level XRP Cannot Afford to Lose

XRP’s fate hangs in the balance. Analyst Ali Martinez warns that the $2.15 mark serves as the neckline of an inverse head-and-shoulders formation—a crucial support level. If it breaks, XRP could plunge to $1.50. However, if it holds, a breakout past $2.80 could ignite a rally toward $5, drawing comparisons to XRP’s legendary 62,000% surge in 2017, as noted by analyst Dark Defender.

Several factors could fuel this bullish scenario:
✅ A potential resolution of the SEC lawsuit
✅ The launch of an XRP ETF (with a 65% chance, according to Bloomberg)
✅ Growing institutional demand driven by RLUSD

With Ripple’s expanding influence and Trump’s apparent support, the next few months could define XRP’s place in the future of finance.