Ripple Proposes Legal Framework and Argues XRP’s Non-Security Status to Guide SEC Crypto Regulation
Ripple has intensified its engagement with U.S. regulators by both formally arguing that XRP should not be classified as a security and by proposing a comprehensive legal framework to assist the Securities and Exchange Commission (SEC) in regulating the cryptocurrency sector. Citing a recent court ruling and academic analysis, Ripple asserts that XRP, especially when traded on secondary markets, lacks the characteristics of a security. The company advocates for a maturity-based approach, suggesting digital assets with proven decentralization, liquidity, and operational history should not be subject to securities laws. Ripple’s newly introduced framework further aims to clarify how digital tokens should be categorized, reduce legal ambiguity, and support market integrity. These developments come amid ongoing legal disputes about XRP’s classification and growing debate over the adequacy of existing regulations for digital assets. This push for regulatory clarity could potentially reshape how crypto projects operate in the U.S. and influence market sentiment toward assets like XRP, directly affecting crypto trader strategies.
Bullish
Ripple’s proactive regulatory engagement—defending XRP’s non-security status and suggesting a clarity-driven framework—reduces legal uncertainty and improves market confidence. Historically, movements towards regulatory clarity in the crypto sector have led to positive price action for affected assets due to reduced legal risks and greater institutional participation. In the short-term, these developments may trigger increased buying interest in XRP as traders anticipate a favorable regulatory outcome. Long-term, implementation of Ripple’s proposed framework could make it easier for new projects to launch and for existing ones like XRP to attract broader investment, potentially supporting sustained market growth.