After enduring years of legal battles under the Biden administration, Ripple Labs is finally seeing light at the end of the tunnel as the U.S. government, under the Trump administration, signals a shift in its stance towards XRP. A recent proposal from the U.S. Securities and Exchange Commission (SEC) now classifies XRP as a strategic financial asset rather than a security, marking a major milestone for Ripple and its ecosystem.
The SEC’s proposal highlights the pivotal role XRP could play in unlocking $27 trillion in global nostro accounts, with the U.S. holding a $5 trillion share. By utilizing XRP, the U.S. could release $1.5 trillion, which would then be funneled into purchasing Bitcoin. This move comes after former President Donald Trump’s recent remarks about Bitcoin as a reserve asset, sparking significant discussions on the future of U.S. cryptocurrency policy. According to the SEC’s proposal, while Bitcoin remains the cornerstone of the nation’s digital reserve, other cryptocurrencies like XRP, Solana, and Cardano could be crucial to the broader digital economy.
The SEC’s proposal also calls for XRP to be reclassified as a payment network, not a security. Such reclassification would help resolve Ripple’s long-standing legal battle with the SEC and provide much-needed clarity to the industry. Furthermore, the proposal urges the Department of Justice to remove existing restrictions preventing XRP-based transactions for banks, while the Federal Reserve and the Office of the Comptroller of the Currency (OCC) are encouraged to mandate XRP integration for bank liquidity solutions through the XRPL network.
Also Read: Trump’s World Liberty Financial Buys 541,242 SEI Tokens, Pushing Price Up 7.5%
This shift in regulatory clarity is expected to set the stage for a major bull run, with XRP’s price already breaking out of a six-year consolidation phase. The proposal outlines a timeline for implementation, which could be fast-tracked within 6-12 months, fueling optimism for Ripple and its supporters. The next few months could mark the beginning of a significant new chapter for XRP as it transitions from legal uncertainty to a cornerstone of U.S. financial strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
