The United States has officially recognized XRP as a strategic financial asset rather than a security, providing long-awaited regulatory clarity for Ripple Labs. Under the Trump administration, the U.S. aims to unlock $1.5 trillion from global nostro accounts using XRP and allocate portions of these funds to strengthen Bitcoin reserves.
A Major Shift in U.S. Crypto Policy
In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) announced that XRP will no longer be classified as a security but instead as a key financial tool within the country’s economic framework. This shift comes as part of a broader strategy under President Donald Trump’s second term, marking a significant easing of pressure on Ripple Labs.
XRP’s Role in the Global Reserve Plan
According to the SEC’s proposal, XRP will play a crucial role in the U.S. global financial strategy. The initiative aims to facilitate the release of $27 trillion in locked nostro accounts worldwide. The U.S. share of this total amounts to $5 trillion, with an initial $1.5 trillion expected to be mobilized through XRP.
A large portion of these funds is earmarked for strengthening Bitcoin reserves, reinforcing its status as the U.S.’s strategic digital asset. President Trump emphasized this vision in a recent statement: “Bitcoin is now America’s strategic digital reserve asset. However, XRP, Solana, and Cardano will also be pivotal to our national digital economy.”
Regulatory Clarity for XRP and Banking Integration
With the new SEC guidelines, XRP is now officially recognized as a payment network and financial instrument. This classification is expected to resolve the long-standing legal battle between Ripple Labs and the SEC. According to sources from the Department of Justice, efforts are underway to remove legal barriers preventing banks from utilizing XRP for financial transactions.
Additionally, the U.S. Federal Reserve and the Office of the Comptroller of the Currency (OCC) are reportedly working on integrating XRP Ledger (XRPL) into the banking system. The goal is to allow banks to leverage XRP for liquidity management and cross-border settlements, making it a foundational element of the country’s digital financial infrastructure.
Implementation Timeline
The SEC has outlined two possible timelines for implementing these regulations. The standard process is expected to take 24 months, while an accelerated plan aims to complete the transition within 6 to 12 months.
As the U.S. takes decisive steps toward regulatory clarity, XRP is poised to become a central pillar of the country’s evolving financial landscape.
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