After years of legal battles under former President Biden's administration, Ripple Labs has finally seen a breakthrough. President Donald Trump's administration is reportedly considering using XRP as part of a plan to establish a strategic cryptocurrency reserve.
A recent proposal from the U.S. Securities and Exchange Commission (SEC) states that XRP is not a security but rather a crucial financial asset for the nation.
The proposal highlights how XRP could help unlock $27 trillion trapped in global nostro accounts, with $5 trillion tied to the U.S. economy. Under this plan, the U.S. government would release $1.5 trillion through XRP and use the funds to purchase Bitcoin.
"Donald Trump’s recent comments on Bitcoin reserves have caused confusion regarding the U.S. government's cryptocurrency strategy. While Bitcoin serves as a strategic digital reserve asset, other cryptocurrencies such as XRP, Solana, and Cardano could play a vital role in the national digital economy," the SEC proposal notes.
A Clear Legal Path for XRP
According to the proposal, XRP should be classified as a payment network rather than a security. Such a move by the U.S. SEC would help resolve the ongoing legal dispute with Ripple.
The proposal also calls for the Department of Justice to lift banking restrictions on XRP transactions. Additionally, it suggests that the Federal Reserve and the Office of the Comptroller of the Currency (OCC) require banks to integrate XRP for liquidity solutions using Ripple’s XRPL network.
To implement these changes, the SEC has outlined a standard timeline of 24 months, with the option to shorten it to 6–12 months.
XRP Price Breakout
With regulatory clarity expected soon, XRP could be on the verge of a major price surge—potentially similar to its explosive rally in 2017. The cryptocurrency has broken out of a six-year consolidation phase and is entering a price discovery phase, setting the stage for significant growth.
As regulatory certainty approaches, XRP’s path ahead could be its most exciting chapter yet.