XRP as a U.S. Reserve Asset? Controversial Proposal on SEC Website Sparks Debate

A bold proposal suggesting XRP adoption as a strategic financial asset by the U.S. government has surfaced, drawing intense reactions from the crypto community.

The document, submitted by financial advisor Maximilian Staudinger, appeared on the SEC’s public comment page, advocating for XRP’s integration into the financial system to enhance liquidity, cut costs, and modernize transactions.

However, the proposal’s ambitious claims—and questionable feasibility—have raised eyebrows.

Breaking Down the Proposal: XRP as a Financial Game-Changer?

At the core of Staudinger’s argument is the idea that XRP could revolutionize financial infrastructure. According to the document:

• $27 trillion is tied up in global Nostro accounts, with the U.S. responsible for $5 trillion
• Using XRP for settlements could free up $1.5 trillion, increasing economic flexibility
• Government payments, such as Social Security and tax refunds, could be processed via XRP, saving $7.5 billion annually

Staudinger argues that XRP adoption would provide fast, low-cost transactions, reduce dependence on central banks, and mitigate fiat currency risks.

“Early adoption of XRP ensures strategic advantages. Its integration strengthens financial security and liquidity while leveraging blockchain technology.”

But while the vision is compelling, is it even possible?

Regulatory Challenges: A High-Stakes Gamble

For this transformation to happen, the proposal calls for massive regulatory shifts, including:

1. Reclassifying XRP as a payment asset, removing its security status
2. A legal settlement between Ripple and the SEC
3. Eliminating banking restrictions on XRP usage
4. A Presidential Executive Order to fast-track approvals
5. Mandating XRP adoption through federal agencies like the Fed and OCC

Such sweeping policy changes would require unprecedented government intervention, making implementation highly unlikely.

Bitcoin Reserve: The Fatal Flaw in the Plan

Perhaps the most controversial aspect of the proposal is its recommendation that the U.S. government acquire 25 million BTC to establish a Bitcoin reserve.

The issue? Bitcoin’s total supply is capped at 21 million—making this idea mathematically impossible.

Even if the government attempted a large-scale Bitcoin acquisition, it would trigger market chaos, price surges, and potential economic disruption. This oversight casts serious doubt on the overall credibility of the proposal.

Community Reactions & SEC’s Position

While the proposal gained traction within XRP circles, XRP validator Vet quickly pointed out that anyone can submit documents to the SEC—but that doesn’t mean they hold any weight. The SEC merely publishes public submissions without endorsing or verifying them.

Additionally, the proposal is not connected to any official regulatory discussions. The SEC has remained silent on the document, and there is no indication that it will influence policy.

Staudinger, whose professional background is limited to financial advisory work at Deutsche Vermögensberatung Aktiengesellschaft (DVAG), has been an outspoken XRP advocate.

He has previously engaged in discussions about XRP’s role in the financial system, even debating gold enthusiast Peter Schiff on the matter.

Reality Check: Will the U.S. Government Ever Consider XRP?

While the proposal presents an intriguing vision of XRP as a national financial tool, the sheer scale of its regulatory, economic, and political hurdles makes it highly improbable.

The U.S. government has not indicated that it plans to integrate XRP into its financial system, and with the ongoing SEC vs. Ripple case, the regulatory environment remains highly uncertain.

For now, the idea of XRP as a U.S. strategic reserve remains pure speculation—but in the world of crypto, nothing is ever truly off the table.