XRP Proposal on SEC Website Calls for Its Recognition as a Strategic U.S. Asset

A recently submitted proposal advocating for XRP’s designation as a strategic financial asset for the United States has surfaced on the U.S. Securities and Exchange Commission (SEC) website. 

Authored by Maximilian Staudinger and directed at the newly established SEC Crypto Task Force, the document argues that integrating XRP into the U.S. financial system could unlock trillions of dollars in liquidity and serve as a more efficient alternative to the current Nostro account system for cross-border transactions.

However, the crypto community has widely dismissed the proposal, citing inaccuracies and unrealistic expectations. 

Additionally, its presence on the SEC website does not indicate endorsement by the regulator, as the SEC routinely publishes public submissions without necessarily adopting their recommendations.

XRP as a Liquidity Solution

Staudinger’s five-page proposal suggests that the U.S. could benefit significantly by classifying XRP as a payment asset and incorporating it into state-level financial infrastructure. 

The document emphasizes that this transition could release up to $1.5 trillion from Nostro accounts, a figure that stems from the broader $5 trillion in U.S.-held funds within the global $27 trillion Nostro account system.

According to the proposal, XRP’s adoption could replace at least 30% of Nostro reserves, acting as a more efficient liquidity solution for financial institutions. 

The document also claims that this shift could generate annual savings of $7.5 billion by reducing inefficiencies in the current cross-border payment system.

Beyond its role in enhancing liquidity, the proposal envisions XRP serving as a payment rail for government transactions, including Social Security disbursements. However, no specific implementation details or technical mechanisms were provided.

Also read: XRP (Ripple) Price Prediction 2025

Proposed Government Actions to Mandate XRP Adoption

To facilitate XRP’s integration into the U.S. financial system, the proposal outlines a multipronged strategy, beginning with an executive order from the President of the United States. 

This order would direct the SEC, Treasury Department, and Department of Justice (DOJ) to classify XRP as a payment asset, effectively resolving Ripple’s long-standing legal battle with the SEC.

The proposed legislative framework includes:

• Mandating banks to adopt XRP as a liquidity asset.

• Requiring the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to enforce XRP integration as a replacement for Nostro accounts.

• Establishing a structured timeline to implement these changes within 12 to 24 months, depending on the regulatory approach (standard vs. accelerated adoption).

In a controversial addition, the proposal ties XRP adoption to Bitcoin acquisition, claiming that the $1.5 trillion freed from Nostro accounts could be used to purchase Bitcoin for the U.S. Strategic Reserve. 

However, the document erroneously states that the U.S. could buy 25 million BTC at $60,000 per coin, a fundamental miscalculation given that Bitcoin’s total supply is capped at 21 million.

Also read: Ripple vs. SEC Endgame – How Will the XRP ETF Shape Up After Delay?

Crypto Community Reaction: Widespread Skepticism

The proposal has been met with strong criticism from industry experts and analysts, many of whom regard it as unrealistic and fundamentally flawed. 

Bitcoin Magazine’s political correspondent, Frank Corva, dismissed the document’s reasoning, highlighting the fact that over two-thirds of XRP’s total supply is still controlled by Ripple, making it unlikely that the U.S. government would adopt it as a national strategic asset.

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?”

Additionally, while the proposal’s appearance on the SEC website generated considerable public discussion, legal experts and SEC observers clarified that this does not reflect the agency’s official stance. 

The SEC routinely publishes submitted proposals and public comments, but this does not mean they are under consideration or have regulatory backing.

Staudinger himself acknowledged this, stating that his intention was merely to highlight XRP’s potential rather than suggest that the SEC is actively evaluating its adoption as a strategic asset.

Also read: Ripple Secures UAE License for XRP Payment Services

Conclusion

While the XRP proposal on the SEC website has sparked debate, it lacks regulatory legitimacy and is widely considered impractical by the broader crypto community. 

The proposal’s claims regarding liquidity solutions, government adoption, and Bitcoin reserves contain several inaccuracies and speculative assumptions.

Although XRP remains a prominent player in the crypto payments sector, its classification as a strategic U.S. asset appears highly unlikely. 

The SEC’s ongoing legal battle with Ripple, combined with concerns over centralized token ownership and regulatory constraints, further complicates the prospect of government-mandated XRP adoption.

At present, the proposal remains a hypothetical vision, rather than a viable policy under serious regulatory review.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

How to Stake XRP (XRP)

XRP to USD: Convert Ripple to US Dollar

FAQs

1. Does the SEC support the proposal to recognize XRP as a strategic U.S. asset?

No, the proposal’s appearance on the SEC website does not indicate endorsement or active consideration by the regulator. The SEC routinely publishes public submissions without implying regulatory approval or intent to act on them.

2. What are the key claims made in the XRP proposal?

The proposal argues that adopting XRP as a strategic financial asset could unlock trillions in liquidity by replacing Nostro accounts in cross-border transactions. It also suggests that the U.S. government mandate XRP’s integration into banking systems and use freed capital to purchase Bitcoin for national reserves—claims widely criticized for their inaccuracies and unrealistic assumptions.

3. Why has the crypto community dismissed the proposal?

Experts and analysts have pointed out multiple flaws, including miscalculations in Bitcoin acquisition, exaggerated liquidity estimates, and the fact that Ripple still controls a significant portion of XRP’s supply. These factors make it unlikely that the U.S. government would recognize XRP as a strategic asset.

4. Could XRP realistically replace Nostro accounts in global banking?

While XRP is designed for efficient cross-border payments, its full-scale adoption as a replacement for Nostro accounts faces significant regulatory, financial, and institutional hurdles. Major concerns include centralization risks, legal challenges, and the reluctance of financial institutions to shift away from existing frameworks without clear global regulatory consensus.

5. What is the current status of XRP in U.S. regulations?

XRP remains at the center of an ongoing legal dispute between Ripple and the SEC over whether it should be classified as a security. While the case’s outcome could influence XRP’s future in the U.S., there is currently no official government move to designate it as a strategic national asset.