XRP Price Set to Skyrocket? SEC’s Latest Move Explained!
The post XRP Price Set to Skyrocket? SEC’s Latest Move Explained! appeared first on Coinpedia Fintech News
After years of legal challenges under Biden’s administration, Ripple Labs can finally take a breath as Donald Trump’s administration seeks to tap XRP to implement its strategic Bitcoin (BTC) reserve. According to a recent comprehensive proposal by the United States Securities and Exchange Commission (SEC), XRP is not a security but a strategic financial asset for the country.
According to the proposal, XRP can help unlock $27 trillion in global nostro accounts, starting with the $5 trillion share of the United States. From this, the United States will release $1.5 trillion through using XRP, and be directed to purchasing Bitcoin.
“Donald Trump’s recent comments regarding a Bitcoin reserve have led to confusion about 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 critical roles in the national digital economy,” the SEC’s proposal noted.
XRP Legal Clarity Pathway
According to the proposal, XRP should be classified as a payment network and not a security. Such a move by the U.S. SEC will enable the settlement of the ongoing legal dispute with Ripple.
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Additionally, the proposal highlighted that the Department of Justice must remove restrictions for banks to enable XRP-based transactions. Finally, the proposal noted that the Federal Reserve and the OCC must mandate the use of XRP for bank liquidity solutions through integration with the XRPL network.
The U.S. SEC has set out a standard implementation timeline of 24 months or an accelerated schedule of between 6-12 months.
Expected Impact
The imminent legal clarity for XRP in the coming months will trigger a major bull run potentially akin to 2017. Already, the XRP price has broken out of a six-year consolidation and is in the process of entreating price discovery in the near future.
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