Ripple's XRP Sees Opportunity in SEC's New Crypto Fundraising Framework

The Securities and Exchange Commission (SEC) has proposed a new framework for how crypto companies raise capital in the US. The proposal, called Regulation Crypto Assets, would allow certain crypto offerings without SEC registration under two thresholds: up to $5 million over four years or up to $75 million annually.

However, according to legal analyst Bill Morgan, the new rules may not be particularly useful for Ripple and its XRP token. Morgan pointed out that Ripple currently releases roughly $300 million worth of XRP from escrow monthly, dwarfing the proposed annual threshold of $75 million.

Morgan argued that Ripple already has other tools available to raise capital, including a bad actor waiver received from the SEC last year, allowing the company to rely on the existing Rule 506 exemption for private securities offerings to institutional investors.