XRP’s Path to Qualifying for Utah’s Strategic Crypto Reserve
The Utah HB230 bill aims to establish a strategic crypto reserve, allowing up to 5% of public funds to be allocated to cryptocurrencies. XRP would need to exceed a $500 billion market cap to qualify, requiring a price above $5 based on maximum supply or over $8.65 based on circulating supply. Currently, Bitcoin is the only cryptocurrency that meets the criteria, leaving XRP and others in contention for future consideration.
A recent bill in Utah, designated HB230, has passed through the House of Representatives, proposing the establishment of a strategic crypto reserve within the state. This initiative permits the state treasurer to allocate up to 5% of specific public funds for investment in cryptocurrency assets. The bill has now transitioned to the Senate for additional consideration and will require the Governor’s approval to become law.
The bill outlines distinct eligibility criteria for crypto assets to qualify for state investment. Specifically, only digital assets boasting a market capitalization exceeding $500 billion on a twelve-month average can qualify. Presently, Bitcoin is the sole asset that meets this criterion, having sustained a trillion-dollar market cap, while other prominent cryptocurrencies, such as Ethereum and XRP, fall short of this benchmark.
To qualify for Utah’s strategic reserve, XRP would need to increase its market capitalization by $360 billion and maintain it for a year. Renowned pro-XRP lawyer Fred Rispoli noted that a unit price of $5 could enable XRP to qualify. However, some community members raised concerns that at this price, XRP would still be below the $500 billion threshold, with an estimated capital of only $288.81 billion based on the circulating supply.
In response, Rispoli contended that a projection considering XRP’s maximum supply of 99.98 billion tokens would correspond to a fully diluted market cap of approximately $500 billion. Thus, for XRP to remain above the $500 billion mark, it must sustain a price beyond $5 for the upcoming year.
Conversely, should one apply the commonly referenced circulating supply of 57.7 billion XRP, the price per unit would need to exceed $8.65 to ensure a market cap over $500 billion. The potential inclusion of XRP in the proposed U.S. federal government crypto reserve has garnered interest from the community, though this proposal remains in the exploratory phase with no definitive commitments yet identified.
In summary, Utah’s HB230 presents an opportunity for establishing a strategic crypto reserve that could align with XRP, provided its market capitalization exceeds $500 billion. As it stands, XRP must reach a price point of $5 or higher, based on its maximum supply, but could require over $8.65 when considering circulating supply metrics. The discussions surrounding potential inclusion in a federal reserve reflect ongoing interest in XRP’s future prospects, although clarity on government intentions remains elusive.
Original Source: thecryptobasic.com
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