The post XRP News: New Proposal Seeks SEC Settlement with Ripple by Classifying XRP as a Payment Network appeared first on Coinpedia Fintech News
On March 14, Maximilian Staudinger presented a proposal to the U.S. Securities and Exchange Commission (SEC) about using XRP as a key financial tool in the U.S. economy. The proposal explains how XRP could significantly benefit the banking system and the country’s financial health.
Unlocking Trillions of Dollars
The document reveals that XRP could unlock up to $1.5 trillion tied up in Nostro accounts, which are special accounts banks hold in other countries to handle international payments. In the U.S., these accounts hold about $5 trillion. By using XRP instead of the current system (SWIFT), banks could free up 30% of this capital and reinvest it into the economy. On top of that, the switch could save the banking system $7.5 billion every year in transaction fees. The proposal even suggests that some of the freed-up funds could be used to buy Bitcoin, creating a national reserve.
Legal Clarity for XRP
For XRP to reach its full potential, Staudinger suggests that the SEC reclassify XRP as a payment network instead of a security. This would help resolve the legal issues Ripple (the company behind XRP) is facing. Additionally, the proposal calls for the Department of Justice (DOJ) to remove any legal restrictions that prevent banks from using XRP.
The proposal includes a 24-month plan for implementing XRP into the U.S. financial system. The first phase would involve securing legal clearance for XRP, followed by testing XRP in government payments, like tax refunds and Social Security. Banks would then adopt XRP in their systems, and over time, the U.S. could build a Bitcoin reserve.
Fast-Tracking XRP’s Adoption
To speed up the process, Staudinger proposes an accelerated timeline. A Presidential Executive Order could fast-track the legal clearance in 1-3 months. A Treasury-backed pilot program could start testing XRP in government payments within just a few months, and full adoption by banks could happen in less than a year. The plan suggests that a national Bitcoin reserve could be built within 6-12 months.
The Financial Impact of XRP
The proposal suggests that using XRP could save the U.S. banking system $7.5 billion a year in transaction fees and free up $1.5 trillion in capital. This money could be used to invest in Bitcoin and strengthen the U.S.’s position in the digital currency market. The document also discusses potential savings in federal payment costs, such as IRS and Social Security payments, totaling $500 billion over 10 years.
XRP’s Role in the U.S. Economy
Staudinger also explains that XRP’s role is different from other cryptocurrencies like Solana and Cardano. While Bitcoin would serve as a national reserve asset, XRP could be used to streamline financial transactions, both for the government and between banks. Solana and Cardano could still be useful for other government functions, but XRP would remain essential for financial transactions.