Ripple Advocates for Regulatory Clarity as XRP Holds Steady at $2.2637
Ripple has taken a proactive stance in urging the U.S. Securities and Exchange Commission (SEC) to establish clearer guidelines for determining when a digital asset like XRP no longer qualifies as part of an investment contract. In a May 27 submission to the SEC’s Crypto Assets and Cyber Unit, Ripple built upon Commissioner Hester Peirce’s "New Paradigm" speech, advocating for a more nuanced regulatory approach. The firm argues that most fungible tokens, including XRP, should not be indefinitely classified as securities once their underlying networks achieve sufficient decentralization and maturity. This proposal challenges the SEC’s current focus on decentralization as the sole criterion for regulatory classification. Meanwhile, XRP’s price remains stable at $2.2637 USDT, reflecting market confidence amid these regulatory developments. Ripple’s initiative could pave the way for more predictable crypto regulations, potentially benefiting the entire digital asset ecosystem.
Ripple Proposes Network Maturity Standard in Challenge to SEC’s Decentralization Focus
Ripple has urged the U.S. Securities and Exchange Commission to establish clearer guidelines for determining when a digital asset ceases to qualify as part of an investment contract. The company’s May 27 submission to the SEC’s crypto Assets and Cyber Unit builds on Commissioner Hester Peirce’s "New Paradigm" speech, advocating for a more nuanced regulatory approach.
The firm contends that most fungible tokens traded on secondary markets shouldn’t be classified as securities, citing legal research showing these assets lack the ongoing issuer-buyer obligations characteristic of investment contracts. This argument draws support from Ripple’s 2023 court victory, which found XRP wasn’t a security in secondary markets—though some institutional sales did meet the criteria.
Ripple’s proposed framework suggests securities law should only apply when issuers haven’t fulfilled material promises or when token holders retain enforceable rights. "We understand the SEC’s concerns," the company acknowledged, while maintaining that excessive regulation becomes unnecessary once a network achieves maturity.
Ripple CLO Challenges SEC’s Crypto Classification Approach
Ripple Chief Legal Officer Stuart Alderoty has escalated tensions with the U.S. Securities and Exchange Commission by formally questioning the agency’s regulatory approach to digital assets. In a pointed letter, Alderoty argued that most fungible tokens traded in secondary markets don’t qualify as securities under existing U.S. law.
The legal challenge references Judge Torres’ landmark ruling in the SEC vs. Ripple case, which determined XRP’s secondary market sales didn’t constitute securities transactions. Alderoty’s MOVE signals Ripple’s continued aggressive posture in seeking regulatory clarity amid its ongoing legal battles.
Market participants are watching closely as this confrontation could set important precedents for how cryptocurrencies are regulated in the United States. The outcome may significantly impact trading volumes across major exchanges for XRP and similar assets.
WisdomTree’s Spot XRP ETF Application Enters SEC Evaluation Cycle
The U.S. Securities and Exchange Commission has advanced WisdomTree’s application for a spot XRP exchange-traded fund to a formal review stage, marking a critical step in the regulatory process. The proposal, submitted via Cboe BZX Exchange, aims to list shares tracking XRP’s spot price using the CME CF Ripple-Dollar Reference Rate.
SEC’s evaluation, which could extend up to 240 days, will scrutinize market integrity and public interest safeguards. The agency has neither approved nor denied the application but underscores its commitment to a thorough assessment under the Securities Exchange Act of 1934.
XRP Price Prediction: Bull Flag Pattern Suggests Potential $18 Breakout
Optimism is building around XRP’s price trajectory as technical analysts identify a bullish flag formation—a pattern often preceding significant upward momentum. EGRAG CRYPTO highlights this consolidation phase as a potential springboard, with logarithmic projections pointing to an $18 target despite recent pullbacks from May’s $2.63 peak.
Three distinct scenarios emerge from the analysis: a conservative linear scale projection, a mid-range Fibonacci-based estimate, and the logarithmic model’s ambitious $18 forecast. Market cap implications loom large, with a $1.5 trillion valuation becoming plausible should the upper targets materialize.
The analysis persists undeterred by XRP’s 13% retreat, framing the dip as typical flag pattern behavior before continuation. Such technical narratives increasingly influence trader psychology in crypto markets, where chart patterns frequently catalyze self-fulfilling prophecies.