The American regulator has once again shaken up the crypto industry by unveiling the long-awaited Regulation Crypto Assets draft. This initiative is, in essence, the first large-scale attempt to create a formal and legal mechanism for digital assets to exit the jurisdiction of securities laws. For many projects that have been balancing on the edge for years, this is not just a new set of rules, but a potential key to legalization in the world's largest capital market.
What exactly does the regulator propose?
The essence of the proposal boils down to creating a two-tier system of registration exemptions. The first option — a "lightweight" one — would allow raising up to $5 million over four years. The second, more ambitious option, provides for raising up to $75 million over any 12-month period, but requires stricter financial reporting and disclosure. In both cases, issuers are obligated to provide investors with simple and clear explanations of the project's essence. The federal status of such a "safe harbor" will take precedence over the rules of individual states, creating a unified legal framework for primary offerings.
The architecture of this initiative reminds me of the ICO era, when the market was flooded with an abundance of projects and billions raised. However, back then, regulators acted "after the fact," putting out a fire that had already ignited. Now we are seeing an attempt to create preventive and clear frameworks, which is undoubtedly a step forward. Nevertheless, as always, the devil is in the details, specifically in the criteria for "decentralization" and "managerial actions."
The XRP case: from court to precedent
This very issue was the cornerstone of the long-running confrontation between the SEC and Ripple. Let me remind you that in 2020, the regulator accused the company of unregistered sales of securities. In 2023, Judge Analisa Torres issued a landmark ruling: the XRP token itself is not a security, but institutional sales were deemed a violation. This created a paradoxical situation where a project could only obtain an exemption through the courts, rather than through a clear administrative algorithm.
The SEC's new proposal is precisely designed to fill this legal void. It contains a "safe harbor" mechanism for an issuer that has completed or permanently ceased all stated managerial actions promised under the investment contract. In other words, as soon as the team stops exerting significant influence over the asset, it ceases to fall under the definition of a security.
The market, however, greeted the news without enthusiasm. XRP continues to trade around $1, showing minimal volatility. The token's market capitalization stands at approximately $62.7 billion, keeping it in sixth place in the rankings, but the price is still several times below the all-time high of $3.65 reached in July 2025.
All attention is now focused on the 60-day public comment period and subsequent hearings in Congress, where the CLARITY Act bill is being considered in parallel. It is the final wording of the "safe harbor" conditions that will be decisive for thousands of projects that have issued tokens outside the United States. Whether they will return to the American market or continue seeking jurisdictions with friendlier regulation depends on how stringent the decentralization requirements become.
My analysis: This proposal is undoubtedly a step toward market maturity. However, I also see a hidden threat in it: the creation of a "safe harbor" with clear limits could be perceived by the industry as an invitation to a new round of speculation, similar to the ICO boom. The key test will be whether the SEC can effectively distinguish bona fide decentralized projects from those that merely simulate decentralization to circumvent the law.