Ripple Endorses SEC Regulation Crypto Assets Proposal
Ripple has officially backed the SEC crypto regulation proposal, urging the U.S. regulator to move away from case-by-case enforcement.
Ripple Endorses SEC Regulation Crypto Assets Proposal
Ripple has officially backed the SEC crypto regulation proposal, urging the U.S. regulator to move away from case-by-case enforcement.
Ripple Backs SEC Crypto Regulation Proposal
Blockchain firm Ripple has officially endorsed the U.S. Securities and Exchange Commission's proposed framework for digital assets, adding its voice to ongoing discussions surrounding SEC crypto regulation in the United States. According to reports from u.today, the company submitted a 20-page comment letter encouraging the regulator to proceed with its proposed rules and abandon long-standing practices.
Ripple's Chief Legal Officer Stuart Alderoty shared the development on X, emphasizing that the regulatory uncertainty and policymaking through enforcement seen over many years have pushed crypto innovation abroad. Alderoty stated that the commission clearly possesses the legal authority to advance the proposal.
Industry Feedback and Proposed Exemptions
The SEC public comment period has drawn participation from various market participants seeking clearer guidance on asset classification and secondary-market trading. Alongside Ripple, firms like Bitwise and the Hyperliquid Policy Center have engaged with the rulemaking process.
The Hyperliquid Policy Center noted that while it supports the overall framework, five specific areas require revision. These concerns involve administrative steps in token airdrops, post-exempt trading, safe harbour protections, token buybacks, and federal-state regulatory interactions. In August, the U.S. regulator initially unveiled proposals introducing two distinct exemptions to traditional securities registration rules, allowing qualifying projects to raise up to $5 million over four years or up to $75 million annually alongside a conditional safe harbor.
Distinction Between Tokens and Investment Contracts
A central argument in Ripple's comment letter focuses on separating the digital asset itself from the investment contract through which it is sold. According to Alderoty, the proposed rules align with the historic Howey decision from the Supreme Court.
The framework suggests that a cryptocurrency does not need to remain classified as a security indefinitely. Its regulatory status depends on the specific sale terms and obligations established by the issuer, rather than decentralization serving as the sole determining factor.
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