Ripple has returned to the regulatory spotlight with a move that could reshape how digital assets are treated in the United States. As lawmakers and regulators debate the future of the cryptocurrency market structure, the company advocates for a framework that reflects the evolution of digital assets over time, rather than locking them into rigid classifications.
The request arrives at a moment when investors, developers, and institutions are increasingly demanding clarity, not just for XRP, but for the entire digital asset market.
According to information shared by CryptoSensei on X, Ripple submitted a new letter to the U.S. Securities and Exchange Commission’s Crypto Task Force, urging the agency to recognize XRP under a lifespan-based regulatory framework.
Ripple’s letter is based on their earlier submissions from March and May 2025, aiming to inform future SEC rulemaking and guidance as Congress advances crypto legislation to recognize XRP under a lifespan-based regulatory framework formally.
BREAKING 🚨@Ripple is urging the U.S. Securities and Exchange Commission to formally recognize XRP under a lifespan-based regulatory framework.
Is this the breakthrough markets have been waiting for, or the start of a much bigger regulatory shift?
Read carefully. pic.twitter.com/tggOjKm2n7
— CryptoSensei (@Crypt0Senseii) January 15, 2026
Separating Transactions From the Asset Itself
Ripple centered its argument on a clear legal distinction between a securities transaction and the digital asset involved in that transaction. The company warned that regulatory models that merge these two concepts risk creating lasting confusion in secondary markets.
Ripple instead encouraged the SEC to ground its approach in legal rights and obligations, allowing an asset to transition over time as it moves beyond its initial distribution phase.
This position reinforces the logic behind Judge Analisa Torres’ 2023 ruling in the Ripple v. SEC case, which determined that XRP itself does not constitute a security when traded on secondary markets. That decision remains a cornerstone of ongoing regulatory discussions and continues to influence how market participants interpret XRP’s legal status.
Why Ripple Rejects “Decentralization” as a Legal Standard
Ripple also took a firm stance against using decentralization as a regulatory metric. The company argued that decentralization exists on a spectrum and shifts over time, making it unsuitable as a legal test.
Ripple cautioned that relying on such a subjective concept could allow some assets to evade oversight while unfairly trapping established, liquid assets in inappropriate regulatory categories.
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Instead, Ripple stressed that existing anti-fraud and market manipulation laws already address concerns related to deceptive conduct, price manipulation, and misuse of privacy-enhancing tools. According to the company, regulators do not need to stretch securities law definitions to police bad actors in cryptocurrency markets.
Fit-for-Purpose Disclosures Over Legacy Frameworks
In its letter, Ripple supported the increasing demand for disclosure rules tailored to specific purposes. The company argued that when disclosures are legally required, such as during primary offerings or instances of unilateral control, regulators should avoid imposing full corporate registration models designed for traditional equities.
Ripple maintained that tailored disclosures would better protect investors without stifling innovation.
Legislative Momentum Shapes the Debate
Ripple’s engagement comes as Congress moves closer to comprehensive crypto legislation. The House has already advanced the CLARITY Act of 2025, which introduces a “digital commodity” category and allocates regulatory authority accordingly.
Senate committees continue to refine their own drafts, highlighting the importance of precise definitions to prevent jurisdictional overlap and market confusion.
What This Means for XRP and the Broader Market
If the SEC adopts a lifespan-based framework, it could signal a meaningful shift toward regulatory clarity and consistency. For XRP, such recognition would strengthen its standing in U.S. secondary markets. More broadly, it could establish a precedent that helps other digital assets transition into compliant, well-defined roles within the financial system.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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