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Speculation around XRP inclusion in a U.S. reserve has triggered discussions about whether the XRPL could attain Systemically Important Financial Market Utility (SIFMU) status.
The conversation sprang up after Bradley Kimes, founder of Digital Perspectives and the XRP Las Vegas Conference, posed a question to X’s AI chatbot Grok regarding the implications of this development.
Kimes asked whether adding XRP to a national reserve stockpile would elevate the XRPL to a SIFMU designation. In response, Grok assessed the situation and noted multiple factors necessary for the classification.
So I asked Grok.
If XRP is added to a Strategic Reserve Stockpile. Would it make the XRPLedger Systemically Important Financial Market Infrastructure (SIFMI)?
Lock in.😎👇
If XRP were added to a strategic reserve stockpile alongside other significant U.S. assets like oil and…
— Digital Perspectives (@DigPerspectives) February 13, 2025
According to Grok, integrating XRP into a strategic reserve alongside assets like gold and oil could boost the asset’s visibility and importance. However, this alone would not automatically classify the XRP Ledger as a SIFMU.
What the XRPL Needs to be a SIFMU
For context, A SIFMU is a financial entity that plays a major role in the stability of the financial system. The AI explained that a SIFMU designation requires an entity to be indispensable to financial markets, where its disruption could pose risks. Simply being a part of a national reserve would not fulfill this criterion.
Grok pointed out that existing SIFMUs primarily serve important financial roles such as clearing, settlement, and transaction custody at a scale large enough to impact financial stability.
Notably, while XRPL offers fast and cost-effective cross-border payments, possibly at a better rate than these entities, it would need to expand its role massively in these core financial services to qualify for SIFMU recognition.
The AI further noted that regulatory and legal considerations are important in determining whether XRPL could achieve this status. If XRP gained recognition as a strategic reserve asset, increased regulatory scrutiny would likely follow.
However, the case involving the U.S. Securities and Exchange Commission (SEC) and Ripple, would need resolution before any major regulatory change could occur. Interestingly, speculations that the new SEC leadership could end the case have emerged.
According to Grok, another factor is widespread adoption by financial institutions. Notably, XRP would need to move beyond being a reserve asset and integrate into national and international financial systems.
Additionally, Grok emphasized that the Financial Stability Oversight Council (FSOC) would have to determine whether XRPL’s failure could destabilize financial markets. For this to happen, the ledger’s role would need to expand to make it an essential part of financial infrastructure globally.
XRP in a US Strategic Reserve?
Notably, discussions around XRP’s potential inclusion in the U.S. strategic reserve came as President Donald Trump signed an executive order to establish a crypto working group in his first week in office.
Part of the working group’s responsibilities is to explore the possible establishment of a “digital asset stockpile.” Notably, the term “digital asset” instead of “Bitcoin” triggered speculation that other crypto assets could be considered for the reserve besides Bitcoin.
Scott Melker revealed that he has heard from reliable sources that XRP is a strong contender. Also, with recent meetings between Ripple CEO Brad Garlinghouse and President Trump as well as Ripple’s donations to the Trump administration, speculations suggest XRP could be included in the reserve. Nonetheless, this remains to be seen.