XRP News Today: SEC Narrows Crypto Securities Scope Amid Market Slump and ETF Delays

The U.S. Securities and Exchange Commission (SEC) has signaled a significant shift in its approach to cryptocurrency regulation, with Chair Paul Atkins confirming that only a small number of digital tokens should be classified as securities. This statement, delivered during the SALT Wyoming Blockchain Symposium 2025, represents a departure from the broader interpretation of the Howey Test under the previous administration, where the majority of crypto assets were treated as investment contracts [1]. Wearing an orange tie, Atkins emphasized that the SEC’s Project Crypto initiative aims to clarify the regulatory framework for digital assets, suggesting that the agency will move forward under the premise that most tokens are not inherently securities [2].

Atkins’ remarks reflect a growing recognition of the diverse nature of crypto assets and a desire to foster innovation while maintaining investor protection. He noted that the President’s Working Group on Digital Asset Markets has issued clear recommendations for the SEC, which the agency is now seeking to implement. On X, Atkins shared a thread summarizing his symposium remarks, highlighting Project Crypto and other priorities such as revitalizing IPO processes [2]. The comments indicate a broader strategic pivot at the SEC, one that seeks to align with evolving market dynamics and legislative efforts such as the recently passed GENIUS Act, which he described as a “seminal step for the US Congress and government.”

Despite this regulatory clarity, the crypto market has continued to experience a correction, with total market capitalization dropping to $3.87 trillion—a 2.3% decline in a single day and the lowest level in two weeks. Bitcoin, the largest digital asset by market cap, fell as low as $112,650 during early Asian trading on Wednesday before rebounding slightly. However, the asset remains 8.5% below its recent peak. Ethereum also suffered, trading below $4,100 as it erased gains from the previous week. Altcoins saw mixed performance, with most remaining in negative territory [1].

The ongoing market slump suggests that investor sentiment is not yet aligned with the regulatory shift. While the SEC’s updated stance may bring long-term stability, it has not yet reversed the downward trend. Additionally, the SEC has delayed decisions on several proposed ETFs linked to cryptocurrencies such as XRP and Dogecoin, adding to the uncertainty for asset managers and institutional investors [4]. The agency’s cautious approach highlights the complexity of balancing innovation with oversight, particularly in an asset class that continues to evolve rapidly.

Atkins also acknowledged the need for a broader “spring cleaning” of the SEC’s operations, pointing to years of enforcement-driven regulation under the previous administration. He emphasized that the agency is committed to a more structured and transparent approach moving forward. Meanwhile, Tether has added former White House crypto advisor Robert Hines to its team, signaling a growing trend of institutional expertise entering the crypto space to navigate regulatory challenges [5].

The SEC’s evolving stance may have long-term implications for the classification and treatment of digital assets. By narrowing the scope of what constitutes a security, the agency could encourage more projects to operate outside the traditional securities framework, increasing competition and diversity in the market. However, this shift also raises questions about how the SEC will ensure transparency and accountability in a more decentralized environment. Market participants will closely watch for further guidance and enforcement actions as the agency continues to refine its strategy.

Sources:

[1] SEC Chair: Will Participate in Project Crypt Furnace Fireside Chat – https://www.moomoo.com/news/flash/20928497/sec-chair-will-participate-in-project-crypt-furnace-fireside-chat

[2] SEC Chair Paul Atkins Says Most Crypto Tokens Are Not Securities – https://coincentral.com/sec-chair-paul-atkins-says-most-crypto-tokens-are-not-securities/

[3] Howey’s Still Here: A Recent Reminder on the Limits of … – https://www.skadden.com/insights/publications/2025/08/howeys-still-here

[4] The Daily: SEC Delays XRP, Dogecoin and Other ETFs – https://www.theblock.co/post/367301/sec-delays-xrp-dogecoin-and-other-etfs-strategy-buys-more-bitcoin-ethereum-ico-wallets-move-funds

[5] Tether Hires Former White House Crypto Official as US Adviser – https://subscriber.politicopro.com/article/2025/08/tether-hires-former-white-house-crypto-official-as-us-adviser-00514253