Earlier this year, President Trump announced a digital asset reserve for the US. Trump had announced the creation of a strategic digital asset reserve for the US on Truth Social. He specifically named Ripple’s XRP, Solana (SOL), and Cardano (ADA) as being a part of the US crypto reserve.
Also Read: Why Is Cardano (ADA) Trump’s Pick for America’s Crypto Reserve
XRP As A Strategic Financial Asset For The US
The US SEC has also acknowledged how Ripple’s XRP, SOL, and ADA could play critical roles in the national digital economy. The financial watchdog stated three key benefits of having a strategic digital asset reserve. Firstly, the SEC highlighted that $1.5 trillion will be freed from banking liquidity. It also said it would save $7.5 billion annually from transaction cost savings.
In a document, the SEC shed light on how XRP’s legal clarity could be achieved. It first aims to classify XRP as a payment network and not a security. It would then remove DOJ restrictions from banks and mandate XRP for bank liquidity solutions.
Recently, a senior White House official revealed that the US has an accumulation plan for Bitcoin (BTC). We could see a similar plan appear for Ripple’s XRP token.
Will The Asset Climb To A New Peak?
If Ripple attains legal clarity, we may see a large number of banks adopt the XRP Ledger. The move may mirror the situation in Japan. Many Japanese banks have flocked to the XRP Ledger for cross-border payments. A similar pattern may emerge in the US as well.
Also Read: US Regulations Could Lead Ripple (XRP) To New Heights
An adoption surge among US banks could lead to a massive price spike for XRP. The asset is currently down by 35.5% from its all-time high of $3.40. XRP hit its peak in January 2018, more than seven years ago. An adoption spree among banks could propel the asset’s price to the $5 mark, if not more.