SEC Crypto Framework Proposal Brings Partial Clarity to Ripple

The XRP token has traded near $1 over the past 24 hours as the US Securities and Exchange Commission (SEC) proposed new rules for crypto assets.

The SEC's Regulation Crypto Assets proposal would provide a clear framework for certain investment contracts involving crypto assets, allowing token issuers to raise money legally and potentially exit securities treatment entirely.

This development has significant implications for Ripple Labs, which was at the center of a long-standing regulatory vacuum. The company faced a lawsuit from the SEC in December 2020 under former Chairman Jay Clayton, alleging unregistered sales of XRP.

The court later found that some institutional sales of XRP violated Section 5 of the Securities Act of 1933, while others did not, and ordered Ripple to pay a $125 million civil penalty. Both sides appealed, but the SEC announced a settlement in May 2025 calling for the return of over $75 million held in escrow to Ripple.

XRP's price has been largely unaffected by the proposal, sitting around $1 - significantly below its July 2025 all-time high of $3.65. This muted reaction suggests that traders are treating this as partial clarity rather than resolution, waiting for a final rule before making any significant moves.