Ripple Backs SEC Crypto Rules and Seeks Key Changes

Ripple has urged the U.S. Securities and Exchange Commission (SEC) to adopt its proposed Regulation Crypto Assets, arguing that clearer standards could prevent cryptocurrency companies from facing costly legal disputes over token classifications. According to CryptoNews, Ripple filed a 20-page comment letter on October 20 supporting the regulatory framework.

The company argues that an investment contract can be a security without making the associated cryptocurrency a security itself. Ripple Chief Legal Officer Stuart Alderoty confirmed the submission in a post on X, emphasizing that the company's previous legal fight with the SEC cost more than $150 million.

Support for Exemptions and Safe Harbors

Ripple’s filing supports the SEC’s proposed exemptions for certain cryptocurrency offerings, which include pathways for startups to raise up to $5 million over four years, or up to $75 million within 12 months subject to disclosures. The company also backs a draft safe harbor addressing when a cryptocurrency is no longer associated with an investment contract, based on when an issuer completes its essential managerial activities.

However, Ripple opposes turning decentralization into a separate legal requirement. The firm argues that decentralization measures cannot reliably determine whether an issuer’s contractual commitments remain in effect, and instead recommends examining what an issuer expressly promised investors.

Calls for Form TR and Secondary-Market Clarity

Among its requested changes, Ripple wants greater certainty around Form TR filings, suggesting that exchanges and brokers should be able to rely on properly filed forms when making trading decisions. The company also asks for consistent treatment of separated crypto assets across federal securities statutes and requests clarification regarding secondary-market transactions under Rule 500.

The public comment deadline for Regulation Crypto Assets was October 20, and the proposal remains subject to SEC review.

Key facts

• Ripple filed a 20-page comment letter on October 20 supporting the SEC's proposed Regulation Crypto Assets.
• The company reported that its previous legal fight with the SEC cost more than $150 million.
• Ripple supports exemptions for offerings up to $75 million but rejects decentralization as a legal test.
• The filing requests clearer standards around Form TR filings and secondary-market transactions.