SEC Publishes Document Proposing XRP as a Strategic Asset for the U.S.
On Thursday, March 13, the U.S. Securities and Exchange Commission (SEC) posted a document titled “Comprehensive Proposal: XRP as a Strategic Financial Asset for the U.S.” sparking significant interest and speculation in the financial and crypto sectors.
The five-page proposal outlines a potential roadmap for XRP to become a central part of the U.S. financial strategy, alongside other cryptocurrencies like Bitcoin. It focuses on how XRP could serve as a strategic tool in the country’s financial system, particularly in enhancing global transactions and improving financial efficiency.
XRP as a Strategic Asset: The Rationale
The document suggests that adopting XRP at the government level could unlock up to 30% of the U.S. $5 trillion share of global Nostro accounts, which could translate to $1.5 trillion in potential savings. It also estimates $7.5 billion in annual savings on transaction fees. The proposal outlines that XRP’s integration could streamline global payments, offering cheaper, faster transactions.
Though the document centers on XRP, it recognizes Bitcoin (BTC) as a strategic reserve asset for the U.S. It suggests that savings from the U.S. Nostro accounts could be used to acquire Bitcoin, with a target of purchasing up to 25 million BTC at an average price of $60,000. While the proposal hints at a potential acquisition of 25 million BTC, it does not suggest that such a purchase is immediately planned or feasible, noting that such an acquisition would likely cause significant market fluctuations due to the current Bitcoin supply.
Proposed Path for Integration
The document lays out a proposed shift in regulatory strategy, urging the SEC to classify XRP as a payment network rather than a security. This would involve the Department of Justice (DoJ) lifting the banking restrictions currently imposed on XRP in certain sections. It also touches on the possibility of a forced settlement to ensure regulatory clarity for XRP, despite the SEC’s recent decision not to contest the ruling that XRP is not a security.
Implementation Timeline
The document outlines two potential timelines for implementation: a standard program with a 12 to 24-month process, and an accelerated program within 6 to 12 months. While the proposal includes some steps for integration, such as ”full-scale financial integration” with mandates from the Federal Reserve and the Office of the Comptroller of the Currency (OCC), it does not provide a full roadmap or clear details on how these steps would be executed.
The Trump Factor
In a section addressing President Donald Trump’s previous statements about cryptocurrency, the document clarifies his position on digital asset reserves. While Trump has voiced support for a U.S. Bitcoin reserve and speculated on a potential ”America First” reserve featuring digital assets from U.S. companies, his statements have left room for confusion about the exact scope and implementation.
The proposal attempts to reconcile this ambiguity by suggesting that Bitcoin would serve as the reserve asset, XRP would be used for state-level transactions, and Solana (SOL) would be employed for applications like secure voting systems, real-time government databases, and digital identity management. Cardano (ADA) is also mentioned as an asset suited for government services like academic credentialing and smart contracts.
Conclusion: Uncertainty and Future Steps
The final section of the document, titled ”Next Steps & Final Recommendations,” summarizes earlier points without introducing new details. Despite its speculative tone, some believe the document may reflect emerging thoughts on how the U.S. could use digital assets to modernize its financial system.
The proposal’s structure, use of checkmarks, and other stylistic choices have led some to speculate that it could be the result of an AI-assisted process. However, it’s unclear to what extent AI tools, like ChatGPT, may have influenced the writing of the document.
Interestingly, the document’s author, Maximilian Staudinger, is not widely recognized, though there are some LinkedIn profiles with that name. One public interaction on social media, in which Staudinger responded to economist Peter Schiff’s views on digital asset reserves, mirrors some of the points raised in the SEC proposal.
While still vague and speculative, the SEC’s document has sparked a conversation about the future role of XRP and other cryptocurrencies in U.S. financial policy. The next steps will depend on how the SEC and other regulatory bodies respond to these ideas in the coming months.
Featured image from: u.today