Maximilian Staudinger's proposal to the SEC argues for XRP as a 'strategic financial asset' for the U.S., claiming it could unlock $1.5 trillion for bitcoin purchases. Critics debunk the proposal's math and logic, noting that Nostro accounts function differently than suggested, raising questions about the mechanics of banks acquiring XRP. The proposal overlooks the hard cap of bitcoin supply and misrepresents the market dynamics, leading to skepticism regarding its feasibility.
The proposal claims that if the SEC classifies XRP favorably and regulatory conditions are set, 30% of $5 trillion locked in Nostro accounts could benefit the U.S. government.
Critics argue that the logic in the proposal is deeply flawed, highlighting the impossibility of turning locked Nostro account dollars into XRP for government use.
The proposal lacks clarity on how domestic banks would acquire XRP, suggesting a misunderstanding of market dynamics and the realities of the cryptocurrency market.
Even with a favorable price point for bitcoin, the U.S. government acquiring 25 million bitcoin is rendered impossible given the actual supply cap of 21 million.
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