XRP had a few rough years after the SEC sued Ripple, the fintech company that utilizes the XRP Ledger, for allegedly selling unregistered securities. The lawsuit presented substantial challenges for the cryptocurrency, and also for investors who were in the dark about its financial classification. However, the lawsuit settlement has brought substantial regulatory clarity for the asset and has since paved the way for a larger crypto framework. Let’s discuss how XRP set the stage for crypto regulations.
How XRP Paved The Path For Crypto Regulations
The SEC vs. Ripple lawsuit finally came to a close last year. A US court ruled that the sale of XRP to retail investors would not fall under securities law. However, the purchase of the asset by institutions would be considered securities. The ruling brought much needed regulatory clarity for investors, which led to a spike in confidence. XRP went on to hit an all-time high of $3.65 in July of last year.
Since the SEC vs. Ripple lawsuit settlement, substantial inroads have been made in crypto regulations. The SEC and the CFTC made a historic joint announcement in march of this year, stating that most cryptocurrencies do not qualify as securities under US law. Crypto assets such as Bitcoin (BTC), Ethereum (ETH), XRP, etc., were classified as digital commodities. Hence, most crypto assets fall under the CFTC’s jurisdiction.
XRP also saw the launch of several ETFs in late 2025, marking a significant milestone in the asset’s history. These products, however, are subject to securities laws, and hence, fall under the SEC’s oversight.
Also Read: XRP: Ripple’s Underrated Use Cases And Products Explained
The US is close to passing the Clarity Act, which many senators anticipate to be passed by the end of May 2026. The Clarity Act will likely further build on what the SEC and CFTC have previously stated. XRP will most likely continue being a non-security for retail players and a security for institutions.
