Expert Says This New SEC Action Is Massively Bullish for XRP

Financial expert Levi has described the U.S. Securities and Exchange Commission’s latest crypto guidance as a major development for the industry, while also calling the update “massively bullish for crypto and $XRP.” His comments followed the SEC’s September 25, 2026 release of updated guidance and FAQs covering several areas of the digital asset market.

The document builds directly on the landmark March Interpretive Release, which the SEC issued jointly with the CFTC and explicitly classified XRP as a digital commodity.

Levi reacted strongly to the development on X, writing, “BIG WIN FOR CRYPTO!!” He then pointed to the SEC’s clarification of how securities laws apply to certain crypto activities and concluded that the update could benefit both the wider industry and XRP.

The SEC’s Division of Corporation Finance issued the material to provide additional information about crypto assets and transactions. However, the agency also made clear that the document represents staff views rather than new binding regulations.

SEC Clarifies Rules Around Functional Networks

The September 25 guidance addresses crypto networks that have become fully functional. SEC staff explained that routine activities involving the security, maintenance, operation, or improvement of a functional network do not automatically qualify as the essential managerial efforts relevant to an investment-contract analysis under the Howey framework.

The SEC also addressed token buybacks involving fully functional and decentralized networks. Under the circumstances described in the guidance, a token buyback does not automatically constitute an investment contract. The analysis can depend on how the transaction operates and whether other factors create expectations of profits from managerial efforts.

The agency also clarified liquid staking receipt tokens. The guidance discusses circumstances in which these tokens can represent interests connected to underlying digital commodities without automatically creating an investment contract.

These points give crypto developers and market participants additional information about how SEC staff approaches several activities that have faced regulatory uncertainty.

The Guidance Does Not Change Securities Law

Levi’s description of the update as a “BIG WIN” reflects his interpretation of its significance, but the SEC placed clear limits on the document.

The Division of Corporation Finance said its FAQs reflect the views of its staff and do not have the force or effect of law. The guidance does not amend federal securities laws or replace existing legal precedent. The SEC also continues to examine crypto assets and transactions based on their facts and circumstances.

As a result, the update provides additional regulatory clarity without creating a blanket exemption for cryptocurrencies or crypto-related businesses.

XRP Already Has Significant Legal Precedent

The SEC’s latest guidance also does not establish a new XRP-specific legal determination. The agency addressed several crypto activities generally rather than issuing a fresh ruling on XRP.

XRP already has important legal precedent from the SEC’s litigation against Ripple. On July 13, 2023, Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP on digital asset exchanges did not satisfy the Howey test under the circumstances before the court. She reached a different conclusion regarding certain institutional sales of XRP.

That distinction remains important when assessing Levi’s claim that the SEC update represents a major development specifically for XRP.

Levi’s post places the latest SEC guidance within a positive regulatory context for crypto and XRP. The September 25 update provides additional information about how SEC staff approaches certain digital asset activities, but it does not independently establish a new legal status for XRP.

The development therefore adds to the regulatory information available to the crypto industry while leaving the legal treatment of individual assets dependent on their specific circumstances.