SEC Intends to Oversee Cryptocurrency Market Following Ripple's Case Decision
The United States Securities and Exchange Commission (SEC) has taken a significant step towards establishing clear regulations for the cryptocurrency industry with its latest initiative, "Project Crypto." Announced in mid-2025, this Commission-wide effort aims to modernize securities regulations to better accommodate crypto assets and blockchain innovation.
The key elements of "Project Crypto" include clear classification guidelines, purpose-fit disclosures, modernized custody and trading rules, support for tokenized securities and DeFi integration, and an innovation exemption. These measures are designed to provide clarity on when crypto assets are securities, stablecoins, digital commodities, or digital collectibles. They also offer tailored exemptions and updated custody and trading standards to facilitate capital formation while protecting investors.
Chairman Paul Atkins, the head of the SEC, emphasized the importance of these clear and simple "rules of the road" to encourage innovation and U.S. leadership in crypto finance. Atkins stated that "most crypto assets are not securities," signalling a shift away from the SEC’s historically stricter approach.
Meanwhile, in the world of XRP, the digital asset has shown promising signs of growth. After overcoming the seven-year structure of the "double bottom," as noted by Tech Analyst Gert Van Lagen, the price of XRP currently stands at $3.14, a 3% increase. Van Lagen predicts that the next key goal for XRP is $34 by mid-2026.
However, it's important to note that more than 95% of XRP addresses are now in profit, which could create sales pressure as investors seek to capitalize on their profits. The ratio of XRP's capitalization to TVL (Total Value Locked) is 2200:1, which some analysts suggest indicates a possible overestimation of the token.
The end of the Ripple case, which resulted in a $125 million fine for Ripple, coincided with the promotion of the Clarity Act, a draft law that creates a common regulatory framework for the crypto sector. However, the Clarity Act has faced criticism from Democrats, including Maxine Waters, the head of the financial committee, who argue that it lacks consumer protection and national security measures.
On the other hand, Republicans are planning to accept the Clarity Act by the end of September 2023. Hester Pierce, known as 'cryptomama,' praised the completion of the Ripple proceedings as a long-awaited event. Despite the ongoing debate, the SEC's "Project Crypto" promises to bring clarity and regulatory flexibility to the U.S. crypto industry.
[1] SEC.gov - Project Crypto: Modernizing Securities Regulation for the Digital Asset Economy [2] CoinDesk - SEC's Paul Atkins: Most Crypto Assets Are Not Securities [3] Forbes - SEC's Project Crypto: The Future Of Cryptocurrency Regulation [4] Coindesk - SEC's Project Crypto: A New Era For Crypto Regulation [5] Medium - SEC's Project Crypto: What It Means For The Crypto Industry
Investing in Ethereum could potentially benefit from the SEC's initiative, "Project Crypto," as the modernized regulations aim to accommodate crypto assets and blockchain innovation. This project includes support for tokenized securities and Decentralized Finance (DeFi) integration, which could positively impact Ethereum's role in the finance sector.
The regulatory flexibility promised by "Project Crypto" could encourage technology adoption and innovation, similar to the shift in the SEC's stance on Ethereum, with Chairman Paul Atkins stating that "most crypto assets are not securities."
