Over the weekend, an SEC document circulated proposing the establishment of the cryptocurrency XRP as the official means of payment and settlement infrastructure for the United States. However, this utopian proposal originates from a private individual and has little chance of being realized.
XRP is supposed to become a key financial instrument for the US, unlocking $1.5 trillion in liquidity and saving $7.5 billion in transaction fees annually. This is according to the proposal by German financial advisor Maximilian Staudinger, which the SEC published under the title "Comprehensive Proposal: XRP as a Strategic Financial Asset for the U.S."
XRP as a settlement layer and reserve asset
The author outlines several steps to achieve the proposed financial benefits. First, he suggests replacing traditional banking liquidity solutions such as SWIFT with XRP, which would free up $1.5 trillion from US nostro accounts. Additionally, he predicts that using XRP for global payments could result in annual savings of $7.5 billion in transaction fees. He also recommends integrating XRP into US government payment systems, such as the IRS and Social Security, potentially saving $500 billion over a ten-year period.
To accelerate this process, Staudinger calls for a regulatory initiative. He proposes that a presidential executive order should eliminate legal uncertainties, while the SEC and the DOJ should act immediately to classify XRP as a commodity. The plan also suggests using the released capital to purchase Bitcoin, further strengthening the US digital financial infrastructure. While Bitcoin would serve as a strategic digital reserve, other cryptocurrencies like XRP, Solana, and Cardano could play a crucial role in the national digital economy, according to the proposal:
- XRP: For financial transactions at the state level, optimizing government payment processes and interbank liquidity.
- Solana: Used for high-speed blockchain applications, such as real-time government databases, secure voting mechanisms, and digital identity management.
- Cardano: Best suited for academic credentials, smart contracts for government services, and secure infrastructure management.
Unrealistic expectations
In a statement to the media, the SEC clarified that the proposal does not have official support from the agency. Documents of this kind are part of the transparent public commenting process. They are neither reviewed nor validated and do not serve as a basis for policy decisions. Staudinger confirmed this on X (formerly Twitter).
Furthermore, the proposed changes are questionable. The high degree of centralization of XRP, where control largely remains in the hands of its creators, would pose a significant risk to the United States. Additionally, it is uncertain whether the network could handle such a load. Since its launch over a decade ago, the XRP Ledger has remained largely unused by financial institutions.
