The U.S. SEC has classified XRP as a payment network rather than a security, increasing the likelihood of resolving legal uncertainties. Along with this, the U.S. government plans to use XRP-based liquidity to purchase Bitcoin.
The U.S. Securities and Exchange Commission (SEC) has classified XRP as a payment network rather than a security, increasing the likelihood of Ripple (XRP) resolving legal uncertainties.
This move has gained attention in the industry, especially as it aligns with the Trump administration's push to use Bitcoin (BTC) as a strategic reserve asset.
According to the SEC's proposal, XRP will play a key role in facilitating liquidity within the global interbank transaction system, with its broader use expected in the U.S. market.
Specifically, XRP-based payments are set to be activated within the U.S.'s global financial network, and there is speculation that up to $5 trillion (approximately 730 trillion KRW) of the $27 trillion (around 39,420 trillion KRW) in international interbank deposits could be converted to XRP-based transactions.
This move would allow the U.S. government to secure $1.5 trillion (around 219 trillion KRW) in liquidity, which will be used to purchase Bitcoin.
The SEC's move indicates its intention to end the long-standing legal battle with Ripple. Additionally, it is reported that the Department of Justice, the Federal Reserve (Fed), and the Office of the Comptroller of the Currency (OCC) are also considering regulatory changes to allow banks to conduct transactions using XRP more freely.
This could open the door for major financial institutions to adopt XRP as a liquidity supply tool.
Investors are also paying close attention to the potential impact of this decision on the future price of XRP. The price of XRP has already broken out of a six-year trading range and entered an upward phase, with growing expectations that if the legal risks are resolved, a rally similar to the 2017 bull market could unfold.
Industry experts predict that the official recognition of XRP as a payment network will bring a new turning point for the cryptocurrency market in the U.S. Moreover, as the SEC's policy shift could have a positive impact on other digital assets, attention is now on future collaboration between regulators and the industry.
