A new proposal submitted to the SEC suggests integrating XRP into the US financial system as a strategic asset. While the SEC often receives unsolicited proposals, they don’t always lead to action.
The proposal outlines how the US could use XRP to boost liquidity and potentially fund a Bitcoin reserve. However, regulatory hurdles remain a challenge.
XRP as a Liquidity Solution for the US Crypto Strategy
Bitcoin at the Core, XRP for Transactions
Maximilian Staudinger, the proposal’s author, advocates for a structured crypto reserve strategy under President Donald Trump’s administration. His plan positions Bitcoin as the core reserve asset while Solana and Cardano support government applications.
However, Staudinger argues that XRP is the ideal choice for financial transactions due to its ability to free up capital from Nostro accounts.
Unlocking Trapped Capital
Nostro accounts, which facilitate cross-border transactions, collectively hold $27 trillion worldwide. Staudinger estimates that $5 trillion belongs to the US, with XRP potentially unlocking $1.5 trillion. He suggests this liquidity could help acquire Bitcoin for the national reserve.
Additionally, shifting government transactions to XRP could save up to $7.5 billion annually in transaction fees. This could streamline IRS tax refunds and Social Security payments.
Regulatory Challenges and Roadblocks
SEC and DOJ Approval Needed
Despite its potential benefits, the proposal faces regulatory uncertainty. Staudinger urges the SEC to classify XRP as a payment asset rather than a security. He also calls on the DOJ to lift banking restrictions on XRP-based solutions.
Fast-Tracking XRP Adoption
The proposal suggests two possible timelines:
- A standard two-year implementation period
- An expedited 6- to 12-month plan, requiring immediate regulatory approval and government trials.
For rapid adoption, Staudinger even proposes a presidential executive order to override existing regulatory barriers.
Will This Proposal Gain Support?
Independent proposals like this rarely carry weight unless backed by major financial institutions or regulatory bodies. However, if industry leaders support the idea, it could push XRP closer to mainstream adoption.
For now, XRP’s regulatory status remains a hurdle, making its future in the US financial system uncertain.
