Ripple Labs and its CEO, Brad Garlinghouse, are under scrutiny following rumors of a private meeting with President-elect Donald Trump. Social media buzz has triggered backlash from industry leaders, accusing Ripple of undermining Bitcoin in favor of central bank digital currencies (CBDCs).

Ryan Selkis, former CEO of Messari, criticized Garlinghouse for “shilling XRP and CBDC implementations.” His sentiments were echoed by Pierre Rochard, Riot Platforms’ vice president of research, who accused Ripple of advancing an "anti-Bitcoin agenda" and urged Trump to appoint pro-Bitcoin policymakers.

Speculation about the rumored meeting has coincided with a sharp rally in XRP, Ripple’s native token, which surged by double digits. Many believe the prospect of Trump’s potential crypto-friendly administration is fueling the market's optimism.

Garlinghouse declined to confirm or deny the meeting during an appearance on Fox Business but expressed enthusiasm for the industry's future under Trump. He stated, "The crypto industry has embraced Trump; Trump has embraced the crypto industry. He sees innovation, entrepreneurship, and opportunity.”

The CEO also attributed the Trump victory and his promise to fire SEC Chairman Gary Gensler as key factors in the crypto market’s positive reaction. Gensler’s tenure has been marked by regulatory hostility toward the sector, leading to suppressed growth for U.S.-based crypto projects.

In a significant legal challenge to Gensler, 18 U.S. states, including Texas and Wyoming, have filed a lawsuit accusing him of “gross government overreach” against the crypto industry. As Trump prepares to take office, Ripple's position in this rapidly evolving political landscape remains a focal point for both supporters and critics.