Altcoins News

Story: XRP and Solana Slip as SEC’s Project Crypto Shakes Up Market Expectations

By Julie Binoche

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The U.S. Securities and Exchange Commission (SEC) has unveiled a major initiative called Project Crypto, aimed at reshaping how securities laws apply to blockchain-based assets…

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The SEC’s proposal introduces legal frameworks for on-chain trading, tokenized asset issuance, and decentralized custody.

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Project Crypto: A New Chapter for U.S. Blockchain Policy

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According to SEC Chairman Paul Atkins, the goal of Project Crypto is to build a future where U.S. innovation in blockchain remains competitive and globally relevant.

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To ease the transition, the SEC plans to roll out temporary measures such as safe harbors, limited exemptions, and formal guidelines that provide more legal clarity to…

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One of the key features of the proposal is its attempt to bring clarity to long-contentious areas, such as token issuance models—including staking rewards and airdrops.

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XRP Drops Below $3 Despite Long-Term Optimism

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Despite initial optimism about a more transparent regulatory framework, Ripple’s XRP token saw a swift decline in price shortly after the announcement.

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On-chain and technical data indicate that the sell-off may not have been driven by panic but rather by strategic profit-taking.

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This price action reflects uncertainty among traders, many of whom appear to be weighing long-term optimism about regulation against short-term risks involving enforcement and…

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Solana also experienced a noticeable downturn following the SEC’s announcement. The price dropped from $169.34 to as low as $166.13 in the hours that followed.

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The hourly RSI for Solana dropped to 26.89—firmly in oversold territory—while the On-Balance Volume (OBV) trended lower, indicating a broad wave of selling pressure.

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SOL’s recent strength had positioned it as one of the leading Layer 1 alternatives to Ethereum, and some analysts had expected that regulatory clarity would be a bullish catalyst.

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The market reaction appears to be driven less by the content of Project Crypto and more by the uncertainties that come with regulatory change.

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In particular, the absence of finalized timelines and the possibility of conflicting interpretations could slow down adoption and introduce compliance headaches in the short term.

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