Project Crypto Announces: The SEC May Transfer Cryptocurrency Oversight to the CFTC, Signaling a New Era of Fairer and Clearer U.S. Regulation of Digital Assets Like XRP.
Is XRP’s breakthrough coming soon? The SEC’s Project Crypto could reclassify XRP as a commodity under the CFTC, ending years of regulatory uncertainty for Ripple.
At the Philadelphia Fed Fintech Conference, SEC Chairman Paul Atkins announced Project Crypto, a bold regulatory initiative that could transfer significant oversight powers from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).
This revelation, first shared by cryptocurrency analyst Diana, has sparked widespread debate across the digital asset community, particularly among XRP supporters, who see this as a potential game-changer for Ripple and its long-standing regulatory challenges.
SEC Reconsiders Role in Cryptocurrency Oversight
Chairman Paul Atkins acknowledged that the SEC’s jurisdiction is limited and emphasized that not all digital assets should be classified as securities. He said: “Once the network becomes autonomous, it’s no longer about security.” This marks a significant departure from the SEC’s previous stance based on the Howie test, which has historically classified most tokens as securities.
The reassessment opens the door to a balanced regulatory framework, allowing the CFTC, which currently oversees commodities such as gold and oil, to take charge of cryptocurrencies that operate as decentralized networks rather than traditional investment contracts.
What it means for XRP and Ripple
If Project Crypto is implemented, the lingering regulatory uncertainty surrounding XRP could finally be resolved. The SEC has long argued that Ripple’s XRP tokens were sold as unregistered securities. Under this proposed framework, XRP would be subject to CFTC oversight and could be formally classified as a commodity rather than a security.
Such a designation would not only bring much-needed regulatory clarity to Ripple, but also accelerate institutional adoption and open new market opportunities for XRP within the broader financial ecosystem.
A turning point towards fairer cryptocurrency regulation
Atkins’ comments highlight a growing recognition within the U.S. government that applying outdated securities laws to decentralized digital assets is no longer consistent with market realities. “Extending beyond the scope of securities law.” he said, “We are straying from fairness and common sense.”
If Project Crypto becomes official policy, it could mark a historic turning point in U.S. cryptocurrency regulation and usher in a new era of fairer, clearer, and innovation-friendly policies that better reflect the decentralized nature of modern blockchain networks.
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