In a significant move for regulatory clarity, crypto payments giant Ripple has formally proposed a new "lifespan-based" regulatory framework to the U.S. Securities and Exchange Commission (SEC). The proposal, detailed in a letter dated January 9, 2026, advocates for a dynamic approach to classifying digital assets like XRP, arguing that a token's regulatory treatment should evolve as it matures.
The core of Ripple's proposal is that early-stage tokens would face more stringent regulatory scrutiny, akin to securities, while established tokens in a mature phase—like XRP—would be treated more like commodities. This framework aims to provide the long-term regulatory certainty that the crypto market desperately needs. As noted by crypto analyst Diana, this "lifespan rule" would mean "a token like $XRP shouldn't be treated the same forever."
The push comes in the wake of XRP's landmark legal victory, where it was ruled not to be a security when sold on exchanges. Ripple's latest effort seeks to solidify that status and protect XRP and similar digital assets from future legal risks. The company argues that consistent and clear rules are critical as digital assets become mainstream, providing businesses and investors the confidence to operate.
Parallel developments in Congress, specifically regarding the CLARITY Act, are also seen as pivotal for XRP's future. Although the Act's markup was recently postponed—a delay some analysts link to Coinbase withdrawing its support—the bill is viewed as a key driver for broader institutional crypto adoption. Analysts project that the passage of such legislation would significantly boost XRP's price by removing regulatory bottlenecks and fostering wider use.
If adopted by the SEC, Ripple's proposed framework could set a powerful precedent for the entire cryptocurrency industry, reducing legal ambiguity and preventing future enforcement actions. It underscores a growing industry-wide demand for regulatory consistency to foster innovation and maintain investor confidence in the United States.
