SEC’s Project Crypto Looms: Will XRP and SOL Prices Skyrocket or Collapse?

The SEC’s Project Crypto is sending shockwaves through the market—and XRP and SOL are in the crosshairs. Here’s what you need to know.

The Regulatory Hammer Drops

With Project Crypto, the SEC isn’t just knocking on the door—it’s kicking it down. XRP and SOL, two of crypto’s heavyweights, could face seismic price shifts as regulators tighten their grip.

XRP: Battle-Tested but Bruised

Ripple’s legal saga already made XRP a poster child for regulatory chaos. Now, Project Crypto threatens to reignite the fire—or finally douse it.

SOL’s High-Wire Act

Solana’s blistering rally could hit a wall if the SEC takes aim. Institutional darling or regulatory target? There’s no middle ground.

The Bottom Line

When the suits in Washington move, markets tremble. Whether you’re betting on a breakout or a breakdown, one thing’s clear: complacency is the real risk. (And let’s be honest—since when has the SEC ever *not* been late to the party?)

Key takeaways

The SEC’s “Project Crypto” announced intent for clearer rules for blockchain markets. While seen as a positive shift, XRP and SOL dropped as traders reacted with caution, driven by uncertainty around enforcement and implementation.

The U.S. SEC has launched “Project Crypto,” a major initiative to modernize securities rules for blockchain markets.

It proposes legal frameworks for on-chain trading, tokenized assets, and decentralized custody – a MOVE away from the agency’s cautious approach.

While seen as a turning point, uncertainties remain around enforcement and implementation.

Project Crypto: SEC’s newest initiative

Project crypto is the SEC’s effort to update old securities laws and create new rules that better fit blockchain technology.

The plan opens the door for legal on-chain trading, tokenized asset issuance, and decentralized custody; key priorities for crypto developers and investors.

About the initiative, SEC Chairman Paul Atkins said,

“The President said last week that he wants “the entire world running on the backbone of American technology.” I stand ready to help get that job done. That is why I am launching Project Crypto…”

To support the crypto industry’s transition, the SEC plans to introduce short-term exemptions, SAFE harbors, and clearer guidance. These measures will give developers room to operate while comprehensive regulations are still being drafted.

The initiative also seeks to clarify long-uncertain rules around token launches—including ICOs, airdrops, and staking rewards.

More broadly, the SEC aims to replace regulatory ambiguity with a transparent, rule-based framework for blockchain-powered capital markets, helping ensure innovation stays rooted in the U.S.

XRP slides below $3 following announcement

Ripple’s [XRP] price action turned sharply bearish in the hours following the SEC’s ‘Project Crypto’ announcement, with the token falling below the $3 mark and extending losses to a low of $2.89 on the hourly chart, as of writing.

Source: TradingView

The sell-off intensified following the announcement, marked by a sharp red candle and rising trading volume, suggesting deliberate distribution rather than panic selling.

 Technical indicators reinforced the bearish sentiment: the RSI plunged DEEP into oversold territory, and the MACD continued to show widening red bars, with no signs of a reversal.

Despite expectations that XRP might benefit from improved regulatory clarity, short-term traders seemed to be locking in profits amid broader market uncertainty. 

As a result, the token dropped 3.57% in the latest trading session.

SOL drops below $170

Solana[SOL] saw a sharp decline following the SEC’s announcement, falling from $169.34 to a session low of $166.13 before stabilizing around $167.29, at press time.

The hourly RSI slipped to 26.89 – indicating oversold conditions – while the OBV continued to trend lower, showing consistent selling pressure.

The large red candle at 08:00 UTC suggests a strong bearish reaction in the immediate aftermath of the news, as traders appeared to sell into the announcement rather than buy the optimism.

Source: TradingView

The broader market followed a similar trajectory. While Project Crypto aims to deliver long-term clarity and legitimize blockchain-based markets, the short-term reaction has been risk-off.

Traders seem to be bracing for implementation delays, enforcement complexities, or simply locking in gains after recent run-ups.

In the NEAR future, continued volatility is likely as the market digests the scope and the limits.