XRP News Today: SEC Advances Project Crypto to Modernize Digital Asset Framework

The U.S. Securities and Exchange Commission (SEC) is advancing its Project Crypto initiative, a comprehensive regulatory overhaul aimed at modernizing the legal framework for blockchain technology and digital assets. Launched to position the U.S. as a global leader in decentralized finance (DeFi) and digital innovation, the initiative introduces clear legal pathways for token issuance, DeFi compliance, and digital wallet protections. It is designed to eliminate outdated intermediaries, reduce regulatory barriers for startups, and clarify asset classifications, particularly in the context of stablecoins [1].

Project Crypto aligns with the GENIUS Act, which aims to provide stablecoin oversight by shifting the regulatory focus from speculative yield to utility. This alignment is expected to ensure stablecoins operate within a secure and transparent legal framework, mitigating systemic risks while supporting innovation. The initiative’s emphasis on decentralization reflects the SEC’s recognition of on-chain infrastructure as a driver of financial progress, with plans to modernize rules like Reg NMS to foster a more efficient and transparent market [1].

Tether, the largest stablecoin issuer, has expanded its footprint in the U.S., reporting a net profit of $4.9 billion in Q2 2025 and allocating $4 billion toward domestic initiatives. These developments coincide with rising regulatory scrutiny of stablecoin operations, particularly concerning transparency and reserve backing. As the SEC works to finalize its approach under Project Crypto, Tether’s growing domestic presence raises key questions about the potential for additional oversight [1].

The broader crypto market has shown resilience, with major cryptocurrencies such as Bitcoin (BTC) and XRP recovering from recent losses. Analysts attribute this rebound to macroeconomic factors and increasing institutional confidence in the sector’s long-term potential. However, the rise of speculative bets—such as reported $25 million in long positions on XRP ahead of a key White House policy report—highlights the market’s ongoing volatility [2].

Global competition in the stablecoin space is intensifying, with countries like South Korea launching USDT-compatible ATMs for foreign visitors using the Kaia blockchain. These developments highlight the growing urgency for the U.S. to establish a clear, competitive regulatory framework that supports innovation without stifling growth [3].

The success of Project Crypto will depend on the SEC’s ability to strike a balance between investor protection and regulatory flexibility. A well-crafted framework could solidify U.S. leadership in blockchain technology and attract global talent and capital. Conversely, overly restrictive policies may push firms to more crypto-friendly jurisdictions, undermining the U.S.’s competitive edge.

As the SEC continues to test the boundaries of its authority, the coming months will be critical in shaping the future of digital assets in the U.S. The outcome will not only impact Tether and other stablecoin projects but also define the broader trajectory of blockchain innovation in America [1].

Source:

[1] Bitcoin, XRP, Ether Recoup Overnight Losses as Analysts Point to Growing Threat to Fed Independence

https://www.coindesk.com/markets/2025/07/31/bitcoin-xrp-ether-recoup-overnight-losses-as-analysts-point-to-growing-threat-to-fed-independence

[2] Crypto Short News – Latest Real-Time Updates

https://coinpedia.org/crypto-live-news/

[3] South Korea Launches USDT ATMs for Foreign Tourists

https://www.ainvest.com/news/south-korea-launches-usdt-atms-foreign-tourists-kaia-blockchain-2507/