tokenclassification

$XRP Here’s the latest on Ripple’s push for clearer token classification rules — a major development in crypto regulation:
yellow.com
CryptoRank
Ripple Urges SEC To End Permanent Token Classification Via Market Structure Letter | Yellow.com
SEC Cryptocurrency Regulation Faces Pivotal Week as Chair Paul Atkins Signals Critical Developments
Yesterday
📌 What Ripple Is Urging
Ripple Labs recently sent a formal letter dated January 9, 2026 to the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force urging a clear, workable framework for token classification — especially to distinguish between:
Securities offerings (regulated financial products) and
Underlying tokens that trade in secondary markets. �
yellow.com
💡 Why This Matters
Ripple argues that the current regulatory approach — especially reliance on “decentralization” as a test — creates “intolerable uncertainty” and inconsistent outcomes. �
yellow.com
Instead, the company suggests:
SEC oversight should be time-bound — tied to the lifespan of contractual obligations (e.g., fundraising promises) rather than permanently labeling a token as a security. �
yellow.com
Once original obligations are fulfilled, the token should be free of securities classification, similar to traditional financial products once an obligation expires. �
AInvest
Ripple’s argument is that this rights-based, obligation-focused framework would reduce legal risk and uncertainties for projects and markets alike. �
AInvest
📊 Proposed Alternatives to “Decentralization”
In earlier submissions (2025), Ripple also challenged the SEC’s reliance on vague concepts like decentralization and proposed more objective tests such as:
A “network maturity” test based on measurable criteria (e.g., market cap, operational history). �
Crypto Briefing
A legal separation test to determine when a token has become distinct from its initial investment contract. �
Coin Edition
These ideas are intended to give both regulators and market participants clearer guidance on when a token should or should not be regulated as a security.
🏛 Regulatory Context
Ripple frames its letter as part of the broader U.S. crypto rule-making process, which includes:
Congressional cryptocurrency market structure bills pending debate. �
yellow.com
Ongoing discussions in the SEC and Capitol Hill over digital asset taxonomy. �
CryptoRank
Separately, some U.S. lawmakers (e.g., Senator Cynthia Lummis) are also pushing for clear crypto rules following major court rulings — highlighting the industry-wide demand for regulatory clarity. �
Coinpaper
🧠 Why This Push Is Significant
Ripple’s letter isn’t just about XRP — it represents a wider industry demand for predictable, principle-based regulation that:
Helps tokens transition out of securities classification as they evolve,
Reduces legal uncertainty for projects and investors,
Could unlock broader institutional participation and market confidence.
This debate is a key part of shaping the next generation of U.S. crypto regulation — and could influence how digital assets are governed worldwide.
If you want a breakdown of how Ripple’s proposals compare to existing SEC tests like the Howey test, let me know!
$XRP
#Ripple #Xrp🔥🔥 #CryptoRegulation #TokenClassification #SEC

SEC Chair Signals Major Shift in Crypto Asset Classification
The US Securities and Exchange Commission SEC is preparing its next phase of regulatory action which promises to bring substantial clarity to the question of what is and is not a security in the crypto space
Project Crypto SEC Chairman Paul S Atkins outlined the next phase of Project Crypto an initiative to create a coherent and transparent framework for digital assets
Token Taxonomy The key plan is to establish a formal token taxonomy a classification system to distinguish between tokens that are securities and those that are not
Evolving Status Chairman Atkins asserted that a token sold as an investment contract (a security) during fundraising may cease to be a security as its network matures and decentralizes and the reliance on the issuer fades
New Categories The proposed framework outlines categories including Digital Commodities Digital Collectibles and Digital Tools signaling a move away from the blanket presumption that most tokens are securities
Industry Relief This shift away from reliance on case-by-case enforcement is viewed as a huge win for developers and crypto firms providing much-needed predictability to the US market
🧠 SEC CLARITY COMING SEC Chairman Paul Atkins announced plans to create a formal token taxonomy under Project Crypto The key signal is that a token's status can EVOLVE meaning it may cease to be a security as its network decentralizes This promises massive regulatory relief and predictability for developers in the US #SECTaxonomy #TokenClassification #RegulatoryClarity