Ripple Urges SEC to Adopt ‘Lifespan’ Rule to Reclassify XRP Over Time
Ripple has proposed that the U.S. Securities and Exchange Commission adopt a ‘lifespan’ regulatory framework for digital assets, using XRP as the lead example. Under the proposal, tokens would face stricter oversight during early-stage fundraising and token sales, then progressively lighter, commodity-style treatment as they mature and achieve market adoption. Ripple argues this would create predictable, stage-specific rules, reduce retroactive enforcement risk, and avoid treating XRP as a one-off exception after recent court rulings that largely found XRP not to be a security on exchanges. The company is also expanding commercial activity — partnering with LMAX Group to promote institutional stablecoin use via RLUSD and pursuing preliminary EMI approval in Luxembourg to grow European cross-border payments. Ripple says a lifespan rule would bring regulatory clarity for XRP and could set a U.S. precedent affecting classification and institutional confidence across the crypto market.
Bullish
Ripple’s push for a lifespan rule reduces long-term regulatory uncertainty around XRP by proposing a clear, stage-based framework. Clearer rules tend to attract institutional capital and reduce the risk of disruptive enforcement actions. The proposal builds on favorable legal outcomes for XRP — courts have largely not treated XRP as a security on exchanges — and couples regulatory lobbying with commercial expansion (LMAX partnership, EMI application). Historically, regulatory clarity (or credible progress toward it) has supported positive price action and increased institutional flows for assets like Bitcoin and Ethereum when spot-ETF or favorable rulings emerged. Short-term effects may include increased buying from traders speculating on a regulatory win and heightened positive sentiment. Volatility could spike around official SEC responses or filings. Long-term, if a lifespan framework or similar precedent is adopted, it would likely be net positive for XRP and other mature tokens by lowering enforcement risk and encouraging institutional adoption. However, uncertainty remains until the SEC responds; a rejection or restrictive counterproposal could produce a negative reaction. Overall, probability-weighted outcome favors bullish impact contingent on regulatory momentum.