The SEC's newly proposed "Regulation Crypto Assets" framework would give token issuers a written path out of securities treatment, but the rule is still a draft open for public comment. XRP trades near $1.00 on the news, well below its 2025 peak, while institutional money keeps flowing into spot ETFs and Ripple's brokerage arm regardless of the outcome.
XRP trades near $1.00, roughly flat over the past 24 hours, after the U.S. Securities and Exchange Commission proposed a new framework called Regulation Crypto Assets. The plan would give token issuers a written route to raise money legally and eventually exit securities treatment entirely. It remains open for a 60-day public comment period, so nothing about XRP's status is settled yet.
The Ripple Case That Forced the Question
The regulatory gap this proposal targets traces back to the SEC's December 2020 lawsuit against Ripple over unregistered XRP sales. A federal court later found that Ripple's institutional sales violated Section 5 of the Securities Act while other sales did not, and ordered the company to pay more than $125 million.
Both sides appealed. Then, on May 8, 2025, the SEC settled, returning more than $75 million held in escrow to Ripple and vacating the court's injunction. Commissioner Caroline Crenshaw dissented, arguing the deal rests on a framework that might never materialize. The case formally closed in August 2025.
What XRP's Price Says About the Uncertainty
XRP now sits well below its July 2025 all-time high of $3.65, and its flat reaction to Tuesday's proposal suggests traders see partial clarity rather than resolution. The token has tended to track pending legislation, such as the CLARITY Act's tokenization provisions, rather than move on any single headline.
Institutional Money Keeps Building Regardless
Institutional exposure has grown alongside the regulatory debate. As of Aug. 17, 2026, U.S. spot XRP ETFs held $934.04 million in total net assets and $1.51 billion in cumulative net inflows, according to SoSoValue data cited by Coinpedia.
Ripple's brokerage arm has kept expanding in parallel. Ripple Prime secured a $275 million private placement of senior unsecured notes to support its growing U.S. business, with a diverse base of institutional investors participating. That buildout is proceeding even as XRP's securities status waits on the SEC's final rule.
Sources: 99Bitcoins, Coinpedia Fintech News, CryptoPotato
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