XRP Gains Momentum as US Reviews Crypto Regulations

The recent comments by US Treasury Secretary Scott Bessent represent a significant policy direction for the cryptocurrency sector. Bessent outlined plans to evaluate regulatory impediments specifically around blockchain technology, stablecoins, and new payment systems, with the stated goal of unleashing the power of American capital markets. This approach, aligned with the current administration’s more crypto-positive stance under President Donald Trump, marks a concerted effort to modernize financial infrastructure. Proposals like the Clarity Act, which aims to separate payment-focused tokens from securities and clarify agency oversight, exemplify this push for definitive frameworks.

For XRP proponents like crypto analyst Levi Rietveld, this regulatory pivot is not just broadly positive—it is uniquely synergistic. Rietveld’s assertion that “$XRP is built for this” stems from a direct alignment between Bessent’s focus on efficient payment systems and the original engineering purpose of the XRP Ledger. The core argument is that removing friction in financial technology is precisely the problem XRP was created to solve, positioning it as a potential beneficiary of clearer regulatory pathways.

The technical architecture of the XRP Ledger provides the foundation for this optimism. Unlike proof-of-work networks, it offers transparent settlement, predictable transaction costs, and fast finality without relying on energy-intensive mining or complex smart contracts. These characteristics are critical for institutional adoption, where reliability and clarity are paramount. In practical application, this is most visible through Ripple’s payment solutions, which utilize XRP as an intermediate settlement asset to eliminate the need for pre-funded nostro accounts in cross-border transactions.

This design philosophy directly addresses the inefficiencies Bessent highlighted. The push to review barriers around “new payment systems” dovetails with XRP’s use case in facilitating faster, cheaper international settlements. As regulatory discussions evolve, the inherent attributes of the XRP Ledger—speed, low cost, and certainty—are seen as a natural fit for a modernized financial system seeking to reduce friction and improve capital flow.

Progress on regulatory clarity is already translating into tangible institutional infrastructure for XRP. The approval and launch of multiple Spot XRP ETFs in 2025 have provided a traditional investment vehicle for major capital allocators. Early performance data is compelling, with these funds attracting over $1.14 billion in inflows shortly after launch. This strong start demonstrates significant demand from asset managers, pension funds, and other institutional players previously hesitant to engage directly with crypto markets.

Analysts from Bloomberg have projected that this is merely the beginning, estimating these ETF products could draw between $5 billion and $7 billion in institutional capital by 2026. This scale of investment would represent a major milestone for XRP, embedding it within conventional portfolio strategies. The success of these funds is intrinsically linked to the regulatory environment; the proposed frameworks for blockchain and digital assets, as discussed by Secretary Bessent, provide the necessary legitimacy and stability for such large-scale institutional participation.