SEC

SEC Continues to Go All-In: Major Pro-Crypto Regulatory Overhaul Announced

The SEC unveils a sweeping pro-crypto agenda with nearly half of 20 new rulemakings focused on digital assets. Chair Paul Atkins promises 'clear rules of the road' for crypto trading, custody, and issuance. XRP and Ripple positioned for major benefits as regulatory barriers fall.

The Ripple Effect

— 5 min read
SEC Continues to Go All-In: Major Pro-Crypto Regulatory Overhaul Announced

Announced

The Securities and Exchange Commission has unveiled a sweeping pro-crypto agenda that could fundamentally reshape digital asset regulation in America. Of 20 rulemakings proposed by the agency today, nearly half have to do with loosening regulations on crypto, marking what SEC Chair Paul Atkins called "a new day at the Securities and Exchange Commission."

This dramatic policy shift represents the most concrete move yet from the Trump administration to fulfill promises of making America the global crypto capital. With the entire crypto market valued at $3.8 trillion, the SEC's new agenda signals a fundamental departure from the enforcement-heavy approach of previous years.

Project Crypto: A Comprehensive Regulatory Framework

SEC chair Paul Atkins said today in a statement that "A key priority of my Chairmanship is clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law." This vision is being implemented through "Project Crypto," a Commission-wide initiative designed to modernize securities regulation for the digital age.

The proposed reforms include several groundbreaking changes. One recommendation would create rules relating to the offer and sale of crypto assets, as well as certain related exemptions and safe harbors. Another significant proposal would amend rules related to the agency's interpretation of the Securities Exchange Act of 1934, to enable the trading of crypto assets on U.S. securities exchanges.

Perhaps most significantly, the SEC plans to reconsider fundamental definitions that have governed financial markets since the New Deal era. The agency plans to consider creating crypto carve-outs to its broker-dealer financial responsibility rules, and even redefining the term "dealer" itself.

Market Implications and Regulatory Context

This regulatory transformation comes at a crucial time for the crypto industry. Both the SEC and CFTC routinely say they're working quickly to try to meet President Donald Trump's expectations that the U.S. support the industry sufficiently that it becomes the global leader in this technology.

The new approach represents a stark contrast to previous regulatory strategies. Former SEC Chair Gary Gensler was criticized for his regressive and enforcement-heavy crypto approach. The SEC set precedents through lawsuits against Ripple, Coinbase, and Binance rather than providing clarity. Under Atkins, the SEC agenda involves proactive rulemaking to define how digital assets can be offered and traded lawfully, modernizing disclosure rules, and terminating initiatives that do not support "smart, effective" regulation.

XRP and Ripple: Positioned for Major Benefits

The SEC's policy shift could have profound implications for XRP and Ripple Labs, which have been locked in a high-profile legal battle with the agency since December 2020. Experts, including pro-XRP lawyers Jeremy Hogan, Fred Rispoli, and Bill Morgan, have clarified that there are high odds of XRP lawsuit dismissal under incoming SEC Chair Paul Atkins.

The timing of this regulatory agenda coincides with critical developments in the Ripple case. Ripple and the SEC agreed to settle the longstanding lawsuit. Ripple will pay $50 million in penalties to the agency, significantly lower than the $125 million fine imposed by the court last year. The two parties also agreed to drop their respective appeals in the case, effectively resolving the lawsuit that began in December 2020.

This resolution removes a major regulatory overhang that has suppressed XRP's institutional adoption. An official end to the Ripple case could pave the way to an XRP-spot ETF market, potentially boosting XRP demand.

XRP Price Potential and Market Access

The regulatory clarity could unlock significant value for XRP holders. If XRP is approved by the SEC, it could lead to more banks and institutions accepting it, making it a giant leap in terms of usage and value. Market analysts are increasingly optimistic about XRP's prospects, with Bloomberg's ETF strategist, Eric Balchunas, now predicting an 85% probability of the XRP ETF approval by the SEC in 2025.

Partnership and Adoption Opportunities

Atkins has also proposed innovative approaches that could benefit Ripple's business model. Atkins has also proposed creating a "regulatory sandbox" for crypto in America. This would allow blockchain and startup projects a way to trial their product within a less regulatory and safe place, so America can compete with other nations that are already out front with regards to crypto development.

The new regulatory framework could facilitate Ripple's global expansion and institutional partnerships. The conference may also cover the ways Ripple's technology, such as XRP, can make global money transfers better.

Looking Ahead: Implementation Timeline

The SEC's ambitious agenda reflects the urgency of establishing clear crypto regulations. The CFTC has been running what Acting Chairman Caroline Pham calls a "crypto sprint" to the same end. This coordinated effort between regulatory agencies suggests that comprehensive crypto rules could be implemented more quickly than previous legislative efforts.

The success of this regulatory transformation will depend on balancing innovation with investor protection. Observers warn that encouraging innovation while protecting investors will be tricky, and it will likely take ongoing tweaks and dialogue to get it right.

Conclusion: A New Era for Digital Assets

The SEC's comprehensive pro-crypto agenda represents a watershed moment for the digital asset industry. By moving from enforcement-based regulation to proactive rulemaking, the agency is positioning America to lead in the global crypto economy. For XRP and Ripple specifically, this shift removes major regulatory barriers and opens pathways to mainstream financial integration.

The implications extend far beyond individual cryptocurrencies. At its core, Paul Atkins' crypto playbook signals a big shift in how the US approaches digital assets as leaning toward collaboration, clearer rules, and innovation-friendly regulation. This could end up shaping not just domestic markets but global crypto dynamics for years.

Key Takeaways:

  • Nearly half of the SEC's 20 new rulemakings focus on crypto deregulation
  • XRP could benefit from lawsuit resolution and potential ETF approval
  • New framework enables crypto trading on traditional exchanges
  • Regulatory sandbox could accelerate blockchain innovation

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DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with Uphold, XRP, or any mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.

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