After years of legal challenges under Biden’s administration, Ripple Labs can finally breathe as Donald Trump’s administration taps XRP to implement a strategic Bitcoin (BTC) reserve. According to a recent comprehensive proposal by the Securities and Exchange Commission (SEC), XRP is not security, but a strategic financial asset for the country.
According to the proposal, XRP will help unlock $27 trillion global Nostro accounts, starting with a US $5 trillion share. This means that the US will use XRP to release $1.5 trillion and direct the purchase of Bitcoin.
“Donald Trump’s recent comments on Bitcoin Reserve have led to confusion over the US government’s cryptocurrency strategy. Bitcoin serves as a strategic digital reserve asset, but other cryptocurrencies such as XRP, Solana and Cardano could play a key role in the national digital economy,” the SEC proposal states.
XRP Legal Clarity
According to the proposal, XRP should be classified as a payment network, not a security. Such a move by the US SEC will allow for the resolution of ongoing legal disputes with Ripple.
Furthermore, the proposal highlighted that the Department of Justice must remove bank restrictions to enable XRP-based transactions. Finally, the proposal noted that the Federal Reserve and the OCC must mandate the use of XRP for bank liquidity solutions through integration with the XRPL network.
The US SEC has set a standard implementation timeline of 24 months or an acceleration schedule of 6-12 months.
Expected impact
The imminent legal clarity of XRP over the coming months will trigger a potentially major bull run in 2017. Already, XRP prices have been split from the six-year consolidation and are in the process of undertaking price discovery in the near future.
