SEC Clears Path for Institutional XRP Adoption with New Regulatory Guidance

The Securities and Exchange Commission (SEC) has clarified its stance on XRP's classification under federal securities law. On September 25, the agency's Division of Corporation Finance published a detailed FAQ page addressing the issue.

Levi Rietveld, creator of Crypto Crusaders, views this as 'a big regulatory boost' for XRP. The document builds directly on the landmark March Interpretive Release, which classified XRP as a digital commodity jointly with the CFTC.

The FAQ clarifies several key points from the March release, including staking and the Howey test. It confirms that activities to maintain or improve a crypto system do not constitute essential managerial efforts under the Howey test.

This development removes a key argument the SEC previously used to pursue securities enforcement against XRP.