Ripple has urged the U.S. Securities and Exchange Commission (SEC) to establish clear cryptocurrency regulations following the conclusion of their lawsuit. The company emphasized that the SEC lacks authority over most digital assets under current laws.
Ripple also pushed for defining crypto assets using existing legal frameworks and excluding staking from securities classification. This development comes amid growing speculation about Ripple’s potential IPO and its impact on XRP’s price.
Ripple Challenges SEC’s Authority Over Digital Assets
Ripple responded to SEC Commissioner Hester Peirce’s request for public input on crypto regulation. The company argued that the SEC does not have jurisdiction over most digital assets based on the Securities Act of 1933 and the Exchange Act of 1934. It asserted that any regulatory expansion should come from Congress, not administrative interpretation.
Ripple criticized the SEC’s past use of the Howey Test, stating that speculative trading and token price discussions do not necessarily indicate an investment contract. The company warned against applying broad regulatory concepts that could distort market clarity. Instead, Ripple called for a legal approach that adheres strictly to existing definitions.
Ripple Defends Staking and Calls for Legal Clarity
Ripple also addressed staking mechanisms, arguing they should not be classified as securities. It explained that staking rewards are generated by blockchain protocols rather than through the managerial efforts of a third party. The company urged the SEC to confirm that such decentralized systems do not require securities registration.
By clarifying these regulatory boundaries, Ripple believes market participants can operate with greater confidence. The company stated that overreach could harm innovation and deter institutional adoption of digital assets.
XRP Price Struggles Despite Legal Victory and IPO Speculation
Despite Ripple’s legal win, XRP’s price has not surged as expected. Analysts suggest that the market had already priced in the lawsuit’s conclusion, leading to muted post-verdict movement. Crypto analyst Ali Martinez predicts that XRP is preparing for a major rally, with the price potentially reaching $15 in this market cycle.
Market sentiment has also been influenced by global economic uncertainty and Federal Reserve policies. Concerns over tariffs, inflation, and interest rate decisions have driven investors toward traditional safe-haven assets like gold and U.S. Treasuries.
Meanwhile, speculation about a Ripple IPO continues to grow. CEO Brad Garlinghouse acknowledged that an IPO is possible but not a priority. Analysts suggest that going public could boost institutional interest, potentially benefiting XRP’s adoption. However, some investors worry that an IPO might shift market focus away from XRP toward Ripple’s stock.
At the time of writing, XRP is trading at $2.40, with analysts predicting potential highs of $10 or more.
