Ripple, the OG issuer of the popular cross-border altcoin XRP, has penned a letter to the U.S. Securities and Exchange Commission (SEC) on May 28, 2025. However, this one was written specifically to the newly-formed Crypto Task Force, advocating for a regulatory sandbox environment, where up & coming legally-compliant digital assets could be tested for eligibility.
How XRP Relies On Changed SEC Attitude
Under the new SEC Chair Paul Atkins, the largest American financial regulator took huge strides towards being more crypto-friendly, resorting to dialogue rather than punishment. The new SEC aims to be more transparent in assessment criteria, so Rippleโs proposal to set up a sandbox environment for candidates in digital asset regulation does make a lot of sense.
As the fresh Ripple vs. SEC crypto news surfaced, XRP price took a 1.2% uptick over the past 24 hours, showing traits of a completing consolidation. The mainstream cross-border altcoin whipped up 323% gains in 365 days, but had a difficult time to reclaim the $3 resistance.
Did XRP Price Just Rinse Off Consolidation?
The $3 resistance for XRP price is absolutely crucial, as the levels were broken in January, when the favorable SEC vs. Ripple case ruling was made known to the public. With an all-time high of $3.40 over 7 years ago, XRP price was extremely close to this milestone at the start of this year, but now trades at below $2.20.
As we can see in the XRP price chart above, thereโs still loads of track to cover in order for XRP bulls, or believers in simpler terms, to regain control of the OG altcoin. Bull Bear Power (BBP) metric is a key indicator of this, flashing bearish since May 24, 2025. Does this mean that large investors are waiting for the next major move in the Ripple vs. SEC case? Rightfully so.
The regulatory playground could smoother up the process of crypto regulation, including a faster pace in adopting altcoins such as XRP in SWIFT or other traditional finance conglomerates. Also, a sandbox environment with comprehensive rules has merit when compared to crypto regulation overseas, argues Ripple in the SEC letter.
Singaporean Project Guardian, the European Blockchain Regulatory Sandbox & the United Kingdomโs Securities Sandbox are quoted as prime examples of such regulatory frameworks.
On The Flipside
- Multiple legal obstacles, most recently Judge Analisa Torresโ rejection of the joint request by SEC & Ripple to settle the legal battle for $50 million, have deprived XRP price from a faster growth.
Why This Matters
Blending innovation with oversight and customer protection is tricky, so a transition from sandbox-tested solutions to regulated markets should help smoother out the crypto adoption process.
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