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Key Insights:
- Ripple news: XRP company proposes a network maturity test to end outdated securities treatment.
- XRP issuer argues tokens in secondary markets lack legal ties to original issuers.
- SEC urged by Ripple to replace vague terms like decentralization with clear criteria. XRP price analysis.
Ethereum (ETH) drew renewed interest after holding above $2,550, with analysts forecasting a move toward $3,000. The recovery followed strong Q2 returns, with technical patterns suggesting a breakout could follow.
Ripple News: XRP Company New Proposal on Degital Assets
Ripple’s letter recommended a “network maturity” test as a replacement for what it calls vague legal standards. The firm insisted that once the original issuer keeps all promises made, the digital asset should not be considered a security any longer. In addition, if the promises have no legal meaning for the present owners. The framework aims to find out when an asset offers more than just what it was designed for.
The proposal outlines measurable criteria to support this shift. Ripple suggests a token should be considered mature if its network has operated publicly for over 10 years and maintains a market capitalization of at least $1 billion. These characteristics, according to Ripple, provide adequate price discovery, trading transparency, and decentralization.
According to the XRP company, such networks are no longer seen as carrying the same risks linked to investment contracts.
Furthermore, Ripple criticized the SEC’s continued use of vague phrases like “sufficient decentralization,” calling them legally undefined and inconsistent. The company asked the Commission to put in place measurable and clear guidelines. It reported that uncertainty about regulations slows down new developments and troubles responsible parties who are still trying to comply with regulations.
Consequently, Ripple cited a 2022 legal paper that supports its interpretation. The document presented the view that secondary markets trading fungible assets should not be concerned with securities law. Ripple added that once tokens circulate widely and are no longer dependent on the original issuer, they lose their investment contract status.
The letter referenced the landmark court decision stating that XRP itself is not a security. However, it noted that early institutional sales could be considered investment contracts
Ripple News: Legal Limits and Regulatory Reform
Ripple also used the letter to highlight the limits of SEC authority. According to the company, the power to create new digital asset laws belongs to Congress. It cautioned against bringing in new regulations and stated that the SEC should focus on preventing fraud and the introduction of new tokens, and not worry about older ones.
Additionally, the Ripple letter advocated for the creation of a narrow safe harbor. Early projects working in compliance won’t have to worry about enforcement being suddenly applied to them. The safe harbor’s purpose would be to protect developers working on open-source protocols. Ripple stated that without these protections, innovation could be stifled, especially for projects with strong compliance records.
The company reiterated its call for consistent policy frameworks. It pointed out that clear standards are required to assist developers, investors, and regulators exploring the industry. Ripple continues to argue that the SEC must work within the boundaries of existing statutory authority.
Notably, Ripple’s legal battle with the SEC remains unresolved. Judge Analisa Torres turned downa $125 million partial settlement on May 15, saying it did not follow the proper procedures. Both parties are expected to resubmit revised terms. As everything comes to a close, the outcome could help decide the future rules for crypto in the country.
XRP Price Prediction Points to Potential Breakout
Amid this Ripple news, technical analysis showed that XRP price may be preparing for a major breakout. According to Analyst Crypto Genius, the token is currently forming a bullish reversal while in a falling channel. The region around $1.8502 is viewed as a convergence of support levels. A break of this resistance could lead to a broader rally in the market.
Based on the analyst’s chart, upcoming targets stand at $2.9520, $3.3967, and $3.8767. Weekly trends are bullish, and the current price movement favors buyers. This technical pattern coincided with Ripple’s legal strategy and broader market optimism. At the time of writing, XRP price traded near $2.29, with a daily drop of approximately 0.94%.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
