A proposal for XRP as a strategic financial asset for the US has been published on the US Securities and Exchange Commission (SEC) website. It appears that Maximilian Staudinger wrote the five-page document and submitted it to the newly established SEC Crypto Task Force.
According to the proposal , the US could see massive financial benefits if it makes XRP a payment asset. The proposal, which presupposes an integration of Ripple XRP into the US financial system, claims that it could unlock up to $1.5 trillion from Nostro accounts.
Comprehensive Proposal to Make XRP a Strategic Financial Asset (Source: SEC)
The Nostro accounts describe accounts held by banks with foreign banks and denominated in foreign currency to facilitate cross-border transactions. According to the document, $27 trillion is stored in these accounts worldwide, with the US holding $5 trillion of the funds. However, it believes that XRP can become the replacement liquidity for 30% of the fund.
It added that XRP could also become the payment rail for financial transactions, saving the US up to $7.5 billion annually. While there are no clear details on how this will happen, it expects the government to use XRP for state-level payments, including Social Security.
Meanwhile, the proposal also mentioned the Bitcoin reserve, noting that the $1.5 trillion from the Nostro accounts will go towards acquiring Bitcoin for the strategic reserve. However, it incorrectly claimed that the US could buy up to 25 million BTC for $60,000 per BTC with the fund, far above the maximum supply cap of 21 million BTC.
The proposal calls for a regulatory overhaul to make XRP payment network
Unsurprisingly, the ambitious proposal also contained recommendations necessary for integrating XRP into the US financial system. The first recommendation is an executive order from the President directing the SEC, the Treasury, and the Department of Justice (DOJ) to classify XRP as a payment asset. The administration believes that this order will resolve the pending lawsuit against Ripple regarding the status of the SEC.
Beyond the executive order, the multiphase plan includes other recommendations calling for legislation that will mandate banks to adopt XRP and require the Federal Reserve and Office of the Comptroller of Currency to make using XRP compulsory for banks as a replacement for Nostro.
The proposal emphasized the SEC and Ripple lawsuit, noting that legal clarity is needed. It noted that implementation could happen within 12 to 24 months, depending on whether the stakeholders follow the regular or accelerated plan.
Crypto community reacts
Meanwhile, the proposal has attracted criticism from many in the crypto community, who consider it a completely unrealistic plan that should be ignored. Bitcoin Magazine political correspondent Frank Corva described it as illogical in an opinion piece.
Corva wrote:
“Given how faulty the logic behind this proposal is, it’s difficult to consider XRP a strategic asset. Plus, why would the U.S. government do so when two thirds of the supply is still in the hands of the organization that issued the asset?”
Although the proposal’s appearance on the SEC website has generated publicity, some users have clarified that the regulator allows individuals to submit proposals and public comments, which it publishes on its website. Thus, this is not the SEC’s official position. Staudinger himself has confirmed this, noting that he wrote it to show the potential of XRP.
