Justin Pope, The Motley Fool

Wed, Jun 4, 2025, 2:45 AM4 min read

• A relaxed regulatory environment could boost adoption of the XRP ledger, a blockchain used for cross-border transactions.

• With the SEC's lawsuit behind Ripple Labs, XRP's creator, institutions may start backing XRP more.

• XRP's price could rise during the next several years; however, it will likely remain a volatile, high-risk investment.

• 10 stocks we like better than XRP ›

The beginning of President Donald Trump's second term has signaled a more relaxed regulatory environment for cryptocurrencies. Trump has already ordered the establishment of a strategic government reserve for Bitcoin and a stockpile for other digital assets.

XRP (Ripple) (CRYPTO: XRP) is also a potential winner. Federal regulators recently dropped their appeal against XRP's developer, Ripple Labs, after the courts ruled mostly favorably for Ripple Labs in a lawsuit that started in 2020.

Now, XRP faces its most straightforward path to broader adoption in recent memory. What does that mean for the crypto's price?

I think XRP could reach new all-time highs, pushing to the $4 mark during the next three years. That's nearly 100% upside from today's price of $2.15. I'll explain why.

Currently, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a secure global messaging network for banks, is the primary instrument for cross-border monetary transfers. The average SWIFT transaction takes about 18 hours and incurs fees of up to $50.

Ripple Labs created the XRP ledger, a blockchain network for banks, governments, and enterprises to facilitate cross-border transactions efficiently. The XRP ledger uses XRP as its native token. Essentially, currency is converted to XRP, transferred on the XRP ledger, then converted to another currency on the other end. The XRP ledger can settle a transaction in seconds and charges no transfer fees.

While regulations can protect businesses and consumers, too much regulation can hinder innovation and growth. Trump has a long history of supporting deregulation, and now that the Securities and Exchange Commission's lawsuit is over, the XRP Ledger's capabilities could finally enable it to gain traction over the next several years.

Investor support for cryptocurrencies remains strong, and institutions are following suit. Cryptocurrency ETFs are emerging, with several already launched for some of the largest cryptocurrencies, including Bitcoin and Ethereum.