SEC Says XRP Has the Potential to Become a US Strategic Asset, Here's Why!

Bittime - A proposal uploaded on the SEC's official website states that XRP has the potential to become a strategic asset for the US financial system. What is the reason behind this decision? Check out the review.

The document was filed by Maximilian Staudinger with the SEC's newly formed Crypto Task Force. If this proposal is accepted, the use of XRP could change the global payments landscape and provide huge financial benefits for the US. 

XRP and Its Potential in the US Financial System

In the five-page document, Staudinger proposed that the US integrate XRP into its financial system as an official means of payment. 

One of the main arguments is that this move could unlock up to $1.5 trillion (around IDR 24.45 quadrillion) from Nostro accounts, which are currently used by banks to store funds abroad to facilitate cross-border transactions.

Currently, around $27 trillion (around IDR 440.1 quadrillion) is held in Nostro accounts globally, with the US holding around $5 trillion (around IDR 81.5 quadrillion). 

This proposal claims that XRP could replace around 30% of these funds, thereby increasing the efficiency of US financial transactions and reducing banking operational costs.

Read also: Can XRP Price Go to $100 per Coin?

Benefits of XRP as a Strategic Asset

In addition to efficiencies in financial transactions, this document also highlights the potential for huge savings for the US government. By using XRP as payment infrastructure, the US can save up to $7.5 billion (around IDR 122.25 trillion) per year. 

Furthermore, XRP can also be used for state-level payments, including social security programs.

However, although it sounds promising, there are no clear technical details regarding how this implementation will be carried out. Will the government really adopt XRP as an official means of payment? This question is still being debated among regulators and the crypto industry.

Regulatory Proposals for XRP Integration

Source: Cryptopolitan

To make this plan a reality, the proposal suggests a series of regulatory changes. The first proposed step is an executive order from the US President instructing the SEC, Treasury Department, and Justice Department to classify XRP as a payments asset. 

This aims to end the legal dispute between the SEC and Ripple regarding the legal status of XRP.

In addition, this proposal also calls for legislation that would require banks in the US to adopt XRP in their systems. In fact, the Federal Reserve and the Office of the Comptroller of the Currency (OCC) are pushing to make XRP a replacement for Nostro accounts.

Read also: Cardano (ADA) vs Ripple (XRP): Comprehensive Comparison Before Investment

However, there are major obstacles in implementing this plan. While this idea seems ambitious, the regulatory process in the US tends to be slow. If these proposals are approved, their implementation could take between 12 to 24 months, depending on the legislative path taken.

Crypto Community Reaction

Although the appearance of this proposal on the SEC's official website sparked speculation, many in the crypto community are skeptical of this idea. Some analysts say that this proposal is too ambitious and unrealistic.

Frank Corva, political correspondent of Bitcoin Magazine, stated that this proposal has many logical errors. 

One of them is the claim that the US can buy up to 25 million BTC with funds of $ 1.5 trillion (around IDR 24,450 trillion) from Nostro accounts, even though the total supply of Bitcoin is only 21 million BTC. This miscalculation calls into question the credibility of the proposal.

In addition, several social media users also reminded that anyone can submit a proposal to the SEC, and not all proposals reflect the regulator's official position. Staudinger himself confirmed that this proposal was made to demonstrate the potential of XRP, not as an official SEC policy.

FAQ

1. Does the SEC officially recognize XRP as a strategic asset?

No, this document is simply a proposal from an individual proposing that XRP be made a US strategic asset. This is not official SEC policy.

2. What are the main benefits if XRP is used in the US financial system?

According to the proposal, XRP could save cross-border transaction costs, replace Nostro accounts, and improve the efficiency of government payments.

3. Will XRP replace traditional payment systems in the US?

There is no certainty regarding this. The implementation of XRP in the US financial system still faces many regulatory challenges.

4. Will the price of XRP increase?

If the SEC does adopt XRP as a strategic asset, it is likely that the price of XRP will rise significantly. However, currently there is no certainty regarding this.

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Reference 

Cryptopolitan, Proposal on SEC website suggests XRP as a strategic asset for US financial system, accessed March 17, 2025.

Mitered, Proposal on SEC website suggests XRP as a strategic asset for US financial system, accessed March 17, 2025.

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