SEC Proposal Threatens to Erode Regulatory Advantage Held by XRP, HBAR, and XLM

An anticipated SEC proposal could change the game for XRP, HBAR, and XLM by potentially diluting their regulatory edge in the US.

A 'tailored offering regime' is set to be proposed by the SEC at an open meeting on Friday, which would create a new legal route for token issuers to sell assets specifically designed for crypto rather than through traditional securities frameworks.

According to Fire Hustle's analysis, this proposal could bring down barriers for thousands of other coins, increasing competition and potentially weakening the current advantage enjoyed by these three assets.

Currently, 18 tokens are not considered securities, but a wider path to clarity could see this number rise to dozens or more, as capital spreads across a broader universe of legally clearer tokens.