XRP Price Implications: Pro-Ripple Lawyer Weighs In on SEC Proposal

XRP price is still hovering around $1.00, barely moving despite a huge regulatory development. The token has been stuck in a tight range for weeks, with bulls and bears unable to break the stalemate. On Tuesday, the U.S. Securities and Exchange Commission formally proposed “Regulation Crypto Assets,” a new framework that could reshape how crypto projects raise capital in the United States. The proposal comes as the Clarity Act remains stalled in the Senate. It introduces two registration exemptions: a one-time exemption for offerings up to $5 million over four years, and a recurring exemption for offerings up to $75 million in any 12-month period. Issuers must still provide narrative disclosures, and those using the larger exemption would face financial statement and ongoing reporting requirements. The proposal includes a conditional safe harbor that would allow a crypto asset to exit securities classification once an issuer has completed or permanently ceased its “essential managerial efforts.” This directly addresses the core question in the SEC’s lawsuit against Ripple over XRP. Bill Morgan, a pro-Ripple lawyer, weighed in on the implications. He noted that the safe harbor could provide a plausible path for XRP to escape investment contract treatment, but only if Ripple certifies that its managerial efforts in relation to XRP have permanently ceased. Morgan suggested Ripple’s growing focus on RLUSD and recent acquisitions may help meet these conditions. He questioned the usefulness of the new exemptions for Ripple, noting the $75 million annual fundraising exemption is dwarfed by Ripple’s monthly escrow releases of around $300 million. The company plans to unlock 1 billion XRP on September 1, re-locking 600 to 800 million, leaving only 200 to 400 million in the market. The safe harbor provision is the most important element for XRP, offering a formal mechanism to exit securities status without a court ruling. The Ripple case ended in August 2025 with Judge Torres ruling that XRP itself is not a security, but institutional sales were deemed problematic. The proposal now enters a 60-day public comment period. Industry groups and stakeholders will submit feedback before any final rulemaking. The SEC’s move comes as the Clarity Act remains stalled in the Senate, with a procedural vote scheduled for September 15.