Ripple is back in the regulatory spotlight — and this time, it might work in its favor. Just as optimism around an XRP ETF gains traction, Ripple’s legal team has submitted a new letter to the U.S. Securities and Exchange Commission (SEC), reigniting the debate around when a digital asset ceases to be a security. The move comes at a critical moment, with XRP trading steadily around $2.29 and retail sentiment heating up.
Ripple’s Letter to the SEC – Challenging the “Investment Contract” Narrative
On May 27, Ripple Chief Legal Officer Stuart Alderoty announced via X that Ripple had sent an additional letter to the SEC’s Crypto Task Force. The document directly addresses a pivotal question raised by Commissioner Hester Peirce in her “New Paradigm” speech: When does a digital asset separate from the investment contract under which it was initially sold?
Ripple’s legal team argues that XRP, like many other tokens, is no longer tied to such a contract in any meaningful way — and therefore should not fall under the SEC’s jurisdiction. The timing of this submission is no coincidence. It appears crafted to support Ripple’s ongoing stance ahead of what could become a historic regulatory decision for the broader crypto industry.
XRP ETF Momentum – Filing Activity Points to Real Possibility
While legal developments unfold, the financial world is closely watching the SEC’s growing involvement with XRP at another level: ETF consideration. A recent document filed with the SEC by Cboe BZX suggests that proposals tied to an XRP Spot ETF are in motion. If approved, XRP would join the ranks of Bitcoin and Ethereum in gaining mainstream investment vehicle status — a major milestone for the token’s legitimacy.
The ETF narrative is further amplified by Ripple’s push to distance XRP from ongoing securities claims. These two fronts — legal clarity and financial productization — are converging in a way that could reshape XRP’s long-term value proposition.
XRP Price Analysis – Holding the Line at $2.29
From a technical standpoint, XRP is holding a narrow consolidation range above $2.25 following its previous rejection near $2.60. Volume remains solid at 2.17 million, suggesting that buyers are not capitulating.
Source: Tradingview
Support levels to watch include $2.10 and $2.00 — key zones that may be retested if sentiment weakens. On the upside, breaking above $2.45 could open a path toward reclaiming the $2.60–$2.80 band seen in April. The market seems to be waiting for a catalyst — and a favorable SEC-related development or ETF headline could deliver just that.
Final Thoughts – Is XRP Poised for a Regulatory and Market Breakout?
Ripple’s latest move adds legal weight to the argument that XRP should no longer be treated as a security — a distinction that, if officially recognized, could unlock new financial avenues for the token. With XRP ETF momentum building and the SEC dialogue evolving, XRP stands at a unique inflection point.
Whether or not approval comes in 2025, the narrative has already shifted. XRP is no longer just a lawsuit token — it’s positioning itself as a regulated asset ready for institutional adoption.
