Financial analyst Levi described the US Securities and Exchange Commission’s latest crypto guidance as a major milestone for the industry, stating that the recent update is “massively bullish for crypto and $XRP.” Levi made his remarks after the SEC published new guidance and FAQs on September 25, 2026, covering several aspects of the digital asset sector.
SEC guidance expands on previous XRP classification
The latest document builds directly on the March Interpretive Release that the SEC issued jointly with the Commodity Futures Trading Commission. That earlier release explicitly classified XRP as a digital commodity, marking a pivotal moment in the asset’s regulatory history.
Levi responded to the new guidance on X, writing, “BIG WIN FOR CRYPTO!!” He suggested that the SEC’s clarifications on how securities laws apply to digital assets could create industry-wide benefits and strengthen the position of XRP. The remarks highlighted positive sentiment among segments of the crypto community.
Levi declared, “BIG WIN FOR CRYPTO!! SEC issues new guidance clarifying securities laws on crypto. This is massively bullish for crypto and $XRP.”
The SEC’s Division of Corporation Finance released the updated material to offer deeper insight into digital asset transactions. However, the agency stated that the document only provides staff interpretation, not new binding rules.
Functional networks, token buybacks, and liquid staking addressed
The SEC guidance clarifies the regulatory status of crypto networks that have achieved full functionality. According to the document, routine operations related to the security, maintenance, or improvement of a network do not automatically meet the “essential managerial efforts” required for a securities law analysis under the Howey test.
In addition, staff addressed the issue of token buybacks in fully functional and decentralized networks, stating that such buybacks do not inherently constitute investment contracts. The characterization, the SEC explained, depends on transaction structure and profit expectations related to managerial actions.
The guidance also provided details on liquid staking receipt tokens. The SEC outlined situations where these tokens may represent interests tied to underlying digital commodities, but do not automatically result in an investment contract.
These points are intended to give developers and market participants greater clarity regarding several digital asset activities that previously faced regulatory uncertainty.
Mini dictionary: Howey test – A US legal standard from a 1946 Supreme Court case, used to determine whether a transaction qualifies as an investment contract and therefore falls under securities regulation.
Guidance offers clarity but does not change securities law
While Levi viewed the guidance as a “BIG WIN,” the SEC clarified that the material reflects staff views and does not carry the force of law. The Division of Corporation Finance emphasized that the FAQs do not amend US securities regulations or supersede existing legal precedent.
The agency indicated that each case involving digital assets continues to be reviewed individually based on specific facts and circumstances. The update aims to provide market participants with additional regulatory insight but does not grant blanket exemptions for cryptocurrencies or related businesses.
The Division of Corporation Finance emphasized, “Staff guidance does not have the force or effect of law and does not alter the application of federal securities laws.”
XRP’s legal position and prior court decisions
Although the new SEC guidance addresses several crypto activities in general terms, it does not create new rules specifically for XRP. The current regulatory treatment of XRP remains influenced by previous court cases. On July 13, 2023, Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP on digital exchanges did not meet the conditions of the Howey test. However, the court reached a different conclusion for some institutional sales.
This legal distinction is important in evaluating the significance of the SEC’s guidance for XRP holders and investors. Levi’s remarks place the latest update within an overall positive regulatory climate for both the crypto market and XRP, but do not signal a new legal determination for the asset itself.
The recent SEC release adds to the available regulatory information for the crypto industry while maintaining individualized assessments for each asset according to its unique circumstances.
