SEC launches Crypto Project: The potential impacts on XRP and SOL prices

The U.S. Securities and Exchange Commission (SEC) has officially launched the "Project Crypto" – a large-scale initiative aimed at modernizing the securities regulation system, in the context of the rapidly advancing blockchain technology.

This project marks a significant turning point for the SEC, as the agency proposes to establish a legal framework for direct on-chain transactions (, the issuance of digital assets in the form of tokenized assets ), and decentralized custody – areas that have long been outside the SEC's cautious orbit for many years.

Although it is expected to be a strategic turning point in shaping the future financial market, "Project Crypto" still faces many doubts regarding its feasibility in implementation and practical deployment.

Project Crypto: The latest initiative of SEC

Project Crypto is the SEC's strategic move to modernize outdated securities laws while establishing a new legal framework suitable for the blockchain era.

This initiative opens the door to legal direct trading activities on the chain, the issuance of digital assets, and decentralized custody – pillars that are of particular interest to developers and cryptocurrency investors.

SEC Chairman, Mr. Paul Atkins, emphasized when announcing the project:

"Last week, the President declared that he wants 'the whole world to operate on American technology'. I am ready to contribute to realizing that vision. That is why I launched Project Crypto..."

To support the crypto industry during the transition period, the SEC plans to implement temporary measures such as short-term exemptions, legal safe harbors (safe harbors), and clearer legal guidance. These tools help create a legal testing space, allowing projects to continue operating without being bound by incomplete regulations.

Another highlight of the initiative is the clarification of the current regulations that are still vague regarding token issuance – including forms such as ICO, airdrop, and staking rewards.

Overall, the SEC aims to eliminate the long-standing "legal ambiguity" and instead establish a transparent, stringent framework that aligns with blockchain technology – in order to both protect investors and ensure that the U.S. remains a global innovation hub in the digital asset space.

XRP plummets below $3 after SEC announcement

Immediately after the "Project Crypto" was announced, the price of XRP unexpectedly turned and plunged, breaking through the $3 mark and continuing to slide to the $2.89 area on the hourly chart as of the time of writing.

Selling pressure is intense, as evidenced by the long red candle along with a surge in trading volume – a clear sign of a deliberate distribution, rather than the usual panic reaction.

Technical indicators are also confirming the negative trend: the RSI index is deeply in the oversold zone, while the MACD continues to widen its downward momentum with increasingly larger red bars, showing no signs of a reversal.

Although many experts still believe that XRP will benefit in the long term thanks to a more transparent legal environment, in the short term, profit-taking sentiment still prevails amid a turbulent market context.

As a result, XRP has dropped 3.57% in the latest trading session.

Solana (SOL) dropped below $170

Solana (SOL) quickly faced strong selling pressure right after the announcement from the SEC, causing the price to drop from $169.34 to a low of $159, before slightly recovering and fluctuating around $164 at the time of this writing.

The hourly RSI has recovered from the oversold area but remains weak below the 50 level – indicating that pessimistic sentiment is prevailing. At the same time, the OBV indicator continues its downward trend, reflecting that the outflow of funds has not shown any signs of stopping.

The cryptocurrency market in general has also witnessed a similar wave of decline. Although the SEC's "Project Crypto" is expected to pave the way for a more transparent and sustainable legal framework in the long run, the initial reaction indicates a high level of caution from investors.

Traders seem to be considering scenarios such as a slow implementation process, barriers to execution, or simply taking advantage of realizing profits after a previous rally.

In the upcoming period, the market is expected to experience further fluctuations as investors continue to reassess the scope and actual impact of this ambitious initiative.