SEC Listing Fuels Speculation on XRP’s Role as a U.S. Strategic Reserve Asset

• The proposal suggests that XRP could unlock $1.5 trillion by replacing Nostro accounts, boosting economic flexibility, and reducing costs.  
• Given Bitcoin’s capped supply, a controversial plan to create a Bitcoin reserve by acquiring 25 million BTC faces practical challenges.

A recent proposal published on the U.S. Securities and Exchange Commission (SEC) website has led to speculation about the role of XRP in the U.S. financial system. 

The document outlines a plan to integrate XRP into the U.S. economy as a strategic reserve asset and claims that the digital asset could unlock trillions of dollars in capital and revolutionize the nation’s financial transactions. However, the proposal also raises questions about its execution and whether it reflects the SEC’s position.

The proposal, submitted by Maximilian Staudinger, outlines a multi-phase approach to incorporating XRP into the U.S. financial infrastructure. One point in the proposal is that XRP could replace traditional liquidity mechanisms, such as Nostro accounts, freeing up capital.

Nostro accounts are estimated to hold $27 trillion globally, with the U.S. controlling around $5 trillion. By replacing these accounts with XRP, the proposal suggests that as much as $1.5 trillion could be released, creating greater economic flexibility.

Anyone can submit proposals and comments to the SEC and within a short review time it's posted on the website.

This is not a document authored by the SEC itself regarding a XRP Strategic Reserve. pic.twitter.com/TdmEg82rz3

— Vet (@Vet_X0) March 13, 2025

Staudinger’s document also claims that shifting U.S. financial transactions to XRP could result in annual savings of $7.5 billion in transaction costs. Additionally, the proposal suggests that XRP could be used for government payments, including IRS tax refunds and Social Security distributions, streamlining financial operations at a national level.

A Call for Regulatory Changes

Staudinger’s proposal calls for changes to U.S. regulations to make this vision a reality. Specifically, it suggests that the SEC reclassify XRP as a payment asset rather than a security, a move that would clear the way for wider adoption.

The proposal also encourages the Department of Justice (DOJ) to remove restrictions on XRP-based solutions in the banking sector. Staudinger also recommends that a presidential executive order could expedite the regulatory process by overriding existing roadblocks, including the need for fast-tracked government trials and mandates for bank adoption of XRP.

The document lays out a two-year implementation timeline, though it also proposes a much faster track, aiming for a six- to twelve-month timeline. Adopting XRP on a national scale would require quick regulatory action and approval from the Federal Reserve and the Office of the Comptroller of the Currency (OCC).

However, one of the proposal’s most heated aspects is its suggestion that the U.S. government could establish a Bitcoin reserve by acquiring 25 million BTC. Nevertheless, this is impractical as the total supply of Bitcoin is capped at 21 million, and even attempting to acquire the entire supply would disrupt the market.

The proposal’s assumption that $1.5 trillion in freed capital could be reinvested into Bitcoin also faces logistical challenges, as reported by ETHNews, making this part of the plan highly controversial.

While the document has gained attention due to its appearance on the SEC website, this does not signify an official endorsement by the SEC. The SEC allows individuals to submit proposals and public comments, which are then archived for transparency. The document in question was likely submitted through a public portal, such as the EDGAR system, and does not represent the SEC’s active stance on XRP.