A newly surfaced proposal suggests that the U.S. government adopt XRP as a strategic financial asset. Maximilian Staudinger, a financial advisor, submitted the plan to the SEC, claiming XRP could unlock trillions in liquidity, reduce transaction costs, and strengthen the U.S. economy.
However, the proposal contains a major flaw. It suggests acquiring more Bitcoin than exists, casting doubt on its feasibility. Let’s explore the details and assess whether this idea has any chance of success.
Can XRP Solve the U.S. Liquidity Problem?
Staudinger envisions the U.S. banking system replacing outdated liquidity mechanisms with XRP. He claims that Nostro accounts worldwide hold $27 trillion, with the U.S. banking sector accounting for $5 trillion. According to his proposal, XRP could unlock $1.5 trillion of that capital, making it available for reinvestment.
Beyond banking, he proposes using XRP for government transactions such as IRS tax refunds and Social Security distributions, which could reportedly save $7.5 billion annually. If implemented, this shift could significantly improve efficiency and reduce costs for taxpayers.
Regulatory Barriers Stand in the Way
Staudinger acknowledges that XRP faces significant regulatory challenges. He calls for major changes, including an official SEC reclassification of XRP as a payment asset rather than a security. He also advocates for a settlement between the SEC and Ripple to eliminate existing legal uncertainties.
To push XRP adoption, he urges the Department of Justice (DOJ) to lift banking restrictions that prevent institutions from using XRP-based solutions. He even proposes that a presidential executive order fast-track the process, compelling banks to integrate XRP within a short timeframe.
His plan includes two rollout options. The standard implementation would take two years, while an accelerated version could happen within six to twelve months. The faster approach would require immediate regulatory approvals and mandatory XRP trials within government agencies and banks.
A Bitcoin Reserve Plan That Doesn’t Add Up
One of the most controversial elements of the proposal involves Bitcoin. Staudinger suggests the U.S. government create a national Bitcoin reserve by acquiring 25 million BTC. However, Bitcoin’s maximum supply is capped at 21 million, making this plan fundamentally impossible.
Even if the U.S. government attempted to buy every Bitcoin in circulation, it would trigger extreme market volatility. The proposal assumes that $1.5 trillion in freed liquidity could fund this acquisition, but experts consider this unrealistic. A move of this scale would disrupt global markets and create instability in the crypto industry.
Did the SEC Endorse This Proposal?
Although the proposal appears on the SEC’s website, that does not mean the SEC endorses it. The SEC allows anyone to submit proposals through public platforms like EDGAR, but these submissions are not fact-checked or officially supported.
Staudinger, a financial advisor at Deutsche Vermögensberatung Aktiengesellschaft (DVAG), has been vocal about XRP’s potential. He previously debated gold advocate Peter Schiff on the advantages of XRP. However, there is no indication that his proposal has gained serious traction among U.S. regulators.
What’s Next for XRP?
The idea of XRP becoming a national financial asset is ambitious, but regulatory challenges, banking resistance, and practical limitations make its adoption unlikely. While the proposal highlights potential benefits, the drastic shifts required make it an uphill battle.
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Regardless, discussions like these show that crypto continues to gain mainstream attention. As digital finance evolves, more conversations will emerge about crypto’s role in global economies
