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- The SEC proposed crypto fundraising exemptions of up to $75 million annually, but the threshold may have limited relevance for Ripple.
- A proposed safe harbor for crypto assets could be more significant for XRP if Ripple meets the required conditions.
- The SEC’s 60-day public comment period could determine how the final framework affects Ripple and XRP.
The U.S. Securities and Exchange Commission’s proposed Regulation Crypto Assets could have broader implications for the crypto industry than its headline fundraising limits suggest. For Ripple and XRP, however, the most important provision may not be the new capital-raising exemptions at all.
The proposal, announced August 18, would establish a tailored securities framework for certain investment contracts involving crypto assets. It follows the SEC’s March 2026 interpretation of how federal securities laws apply to crypto transactions and now enters a 60-day public comment period.
SEC Proposal Sets New Crypto Fundraising Rules
Under the proposed framework, eligible crypto projects could raise up to $5 million over four years or $75 million annually without registering a securities offering with the SEC, subject to the proposal’s conditions.
The SEC also wants to create a conditional safe harbor for digital assets after an issuer has permanently stopped the essential managerial efforts that supported an investment-contract relationship. The proposal would additionally preempt some state-level securities registration requirements.
SEC Chairman Paul Atkins said the framework is intended to give crypto entrepreneurs clearer routes to raising capital while establishing a defined path for assets once an issuer’s essential managerial role has ended.
Those changes could be significant for smaller crypto companies. But the numbers are unlikely to transform Ripple’s position.
Why Ripple May Not Need the New $75 Million Exemption
Attorney Bill Morgan argues that the fundraising thresholds offer limited practical value to Ripple. The company has historically released XRP from escrow on a much larger scale, with roughly $300 million worth of XRP released monthly according to the context surrounding his analysis.
That makes the proposed $75 million annual ceiling comparatively small for Ripple.
Morgan has also pointed to Ripple’s reported SEC bad-actor waiver, which could allow the company to use existing Rule 506 exemptions for certain private securities offerings to institutional investors.
For Ripple, then, the proposal’s fundraising provisions appear less consequential than another part of the framework.
XRP Safe Harbor Could Be the Bigger Issue
The more important question centers on the proposal’s conditional safe harbor, sometimes referred to as Rule 400.
Morgan believes XRP could potentially have a path toward qualifying if Ripple can certify that it has permanently ended the essential managerial efforts associated with XRP. Such a determination could be important because previous court proceedings treated some of Ripple’s institutional XRP sales as investment contracts, while a permanent injunction continues to constrain the company.
Morgan points to Ripple’s growing emphasis on RLUSD and its acquisitions over the past 18 months as possible evidence that its business has increasingly moved beyond XRP-specific development.
That argument remains subject to regulatory interpretation and the final form of the SEC rules. The proposal is not yet law, and public comments could change its provisions.
The central issue for Ripple may therefore be less about whether XRP is treated as a commodity and more about whether Ripple can demonstrate that its historical managerial role surrounding XRP has ended.
If the SEC ultimately adopts a workable safe harbor and Ripple satisfies its requirements, the framework could provide a clearer regulatory path for XRP.
Also Read: SEC Could Unveil Crypto Rules Friday as XRP Braces for a Major CLARITY Act Catalyst
For now, though, investors will need to watch the 60-day comment period and any changes the SEC makes before finalizing the rules.
The SEC’s crypto proposal could reshape how digital-asset companies raise money in the United States, but Ripple may have more to gain from the proposed safe harbor than from its fundraising exemptions. For XRP, the decisive question could be whether Ripple can convincingly establish that its essential managerial involvement has ended.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
