Ripple’s Regulatory Breakthrough? Project Crypto Could Put XRP Under CFTC Control

Story Highlights: SEC unveils Project Crypto, which could shift oversight of cryptocurrencies to the CFTC. This move signals a new era of fairer and clearer U.S. regulatory frameworks for digital assets such as XRP. XRP supporters see this as a potential turning point, offering long-awaited clarity for Ripple and its ongoing regulatory battles.

Is XRP a security or a commodity? With Project Crypto, the SEC could reclassify XRP as a commodity under the Commodity Futures Trading Commission (CFTC). For Ripple, this would resolve years of regulatory uncertainty, potentially freeing the company to expand its influence in the digital financial marketplace.

At the Philadelphia Fed Fintech Conference, SEC Chairman Paul Atkins announced Project Crypto. This groundbreaking initiative could transfer significant oversight power from the SEC to the CFTC, particularly for cryptocurrencies like XRP that function as decentralized networks. Crypto analyst Diana first revealed the news, which has since fueled widespread discussion among blockchain enthusiasts and XRP supporters.

During the conference, Chairman Paul Atkins acknowledged the limitations of the SEC’s jurisdiction. He admitted, “Once a network stands on its own, it’s no longer a security.” This represents a fundamental shift from SEC’s historical reliance on the Howey Test. Such a re-evaluation paves the way for a balanced regulatory framework, allowing the CFTC to oversee decentralized cryptocurrencies, much like they regulate traditional commodities such as gold or oil.

For Ripple and its XRP token, Project Crypto could mean the start of a new chapter. If XRP is reclassified as a commodity under CFTC oversight, Ripple would achieve the regulatory clarity it has long sought. This shift would also likely boost institutional adoption and create new opportunities for XRP in the broader financial ecosystem.

Atkins’s remarks underline a critical turning point for U.S. crypto regulation. He emphasized that applying outdated securities laws to decentralized assets no longer makes sense. Atkins warned, “When we stretch securities laws beyond their scope, we stray from fairness and common sense.” If implemented, Project Crypto could usher in innovation-friendly policies, reflecting the decentralized nature of blockchain networks and promoting a fairer regulatory environment.