The American regulator has unveiled the long-awaited draft of Regulation Crypto Assets, which could radically change the rules of the game for digital asset issuers. This is the first step toward creating a clear and predictable procedure for tokens to exit the jurisdiction of securities laws.

The question of exactly how a crypto asset can cease to be considered a security has been a cornerstone of the protracted legal battle between the SEC and Ripple. Now, the regulator is proposing a formalized mechanism that essentially replaces years of litigation with clear, written conditions.

What the new SEC rules offer issuers

The draft provides two paths for exemption from mandatory registration under U.S. securities laws:

  • One-time option — allows raising up to $5 million in total over four years.
  • Alternative option — permits raising up to $75 million within any 12-month period.

Both paths require issuers to provide investors with simple and clear explanations of the project's essence. For larger quotas, publishing financial statements and filing ongoing reports will also be required. Federal regulation will take precedence over regional rules, which removes the requirements of individual states for such primary offerings and certain secondary trades.

In structure, this resembles the ICO era, when projects raised billions through public sales, but the market was later shut down by regulators. Now, maximum amounts and transparency requirements are set from the very start.

The package continues the joint token classification published by the SEC and CFTC on March 17. That clarification outlined how a crypto asset that is not a security can enter or exit an investment contract — the legal form that causes a token sale to fall under securities law. Public comments on the new draft will be accepted for 60 days after its publication in the Federal Register.

The question that made the XRP case famous has received a written answer

The SEC sued Ripple in 2020, claiming that XRP sales violated securities registration requirements. Judge Analisa Torres ruled in 2023 that XRP itself is not a security, but certain institutional transactions violated the law. The case concluded in August 2025.

This ruling created a problem faced by all projects after Ripple. A token could only obtain an exemption from security status through a court decision, but until now there was no clear algorithm for exiting without judicial involvement. The new safe harbor offers the missing mechanism.

When a team fulfills or officially ceases the stated managerial work for buyers, the asset will no longer fall under the definition of an investment contract.

"In accordance with the commission's prior clarifications, the current proposal also provides a safe harbor for an issuer that has completed or permanently ceased all key managerial actions it stated or promised as part of the investment contract," said SEC Chairman Paul S. Atkins in a release.

The market barely reacted. XRP is hovering around $1 — almost no change over the past day. The token's market cap stands at $62.7 billion, ranking sixth overall. XRP's price remains far from its July 2025 record of $3.65.

The focus now shifts to the comment collection phase and congressional review, where the CLARITY Act, which defines the market structure for digital assets, awaits a Senate vote. The final terms of the "safe harbor" will be crucial for issuers that launched tokens outside the U.S.: they will determine whether sales return to the American market.

My analysis: This is a landmark but only first step. The SEC finally acknowledges that regulation through lawsuits is a dead end. However, the key intrigue lies in how strict the final "safe harbor" conditions will be. If they turn out to be overly bureaucratic, the market may not feel the expected effect. For XRP, this is more of a historical milestone than a price driver — the market has already priced in Ripple's victory, and now it awaits new growth triggers.