XRP as a strategic asset? SEC reveals ambitious plans for integration into the US financial system

• XRP as a strategic asset in the USA.
• Cryptocurrency diversification.
• XRP, SOL and ADA with roles in the financial system.

In a surprising move, the document called “Comprehensive Proposal: XRP as a Strategic Financial Asset for the U.S.” was recently published on the U.S. Securities and Exchange Commission (SEC) website. The five-page document outlines an ambitious plan to integrate XRP into the country’s financial system, suggesting that Ripple’s native token could play a crucial role in streamlining U.S. international financial transactions.

The news has seen the price of XRP react positively, posting considerable gains today, March 14. At the time of publication, the price of XRP is trading at $2,37, up 4.4% in the last 24 hours. Earlier, the cryptocurrency peaked at around $2,39, but has pulled back slightly in the last few hours.

According to the proposal included in the document, the adoption of XRP by the US government could free up a significant portion of the US’s $5 trillion in global Nostro accounts, resulting in substantial savings on transaction fees. Furthermore, the document suggests that the saved funds could be directed towards the acquisition of Bitcoin (BTC), further cementing the cryptocurrency’s role as a strategic reserve asset in the country.

“Key economic benefits: $1,5 trillion freed up from bank liquidity; $7,5 billion in annual transaction cost savings; The ability to establish a national Bitcoin reserve,” the document highlights.

Despite focusing on XRP, the document recognizes the importance of other cryptocurrencies, such as Solana (SOL) and Cardano (ADA), in the US digital infrastructure.

“Solana and Cardano should be integrated into the U.S. digital infrastructure but not included in the reserve strategy. Instead, they increase efficiency and security for state applications, while XRP remains the primary asset for financial transactions,” the document explains.

The proposal outlines two timelines for implementing the plan: a standard 12- to 24-month process and an accelerated 6- to 12-month process. However, the document does not provide comprehensive details on how each step will be implemented.

A proposal suggests that Bitcoin would be the reserve asset, XRP would be used for state-level transactions, and SOL and ADA would have specific roles in the US digital infrastructure, as outlined below by the Authority in its white paper.

Clarifying the functions of different cryptocurrencies:
• XRP → For state-level financial transactions, optimizing government payments and
interbank liquidity.
•Solana → Used for high-speed blockchain applications such as government databases
real-time, secure voting mechanisms and digital identity management.
• Cardano → Best suited for academic accreditation, smart contracts for services
government and secure infrastructure management.

SEC May Redefine Ripple’s XRP as a Commodity

In yet another chapter of the SEC vs. Ripple case Today, the United States Securities and Exchange Commission (SEC) is assessing A new classification for Ripple’s XRP, which could be considered a commodity, according to information released by Charles Gasparino, senior correspondent for FOX Business. This discussion is part of ongoing negotiations with Ripple Labs, highlighting a possible significant change in how the token is viewed by regulators.

Gasparino noted that the SEC is using Ethereum as the basis for its arguments, given that, after its initial coin offering (ICO), Ether began to be treated as a commodity. This precedent could heavily influence the final decision on XRP’s status, especially considering the similarities in the initial uses of ETH and XRP to fund the development of their respective blockchain networks.