The post Could This Shift Unlock XRP ETFs and Redefine Crypto Regulation? appeared on BitcoinEthereumNews.com.

Key Takeaways: Ripple’s Chief Legal Officer pushes the SEC for clear, legally grounded guidelines on when crypto tokens cease to be securities. Proposes a “network maturity” test to distinguish mature digital assets from securities, emphasizing Congressional lawmaking over regulatory overreach. Legal precedent from the Ripple case supports that many XRP transactions, especially secondary market sales, do not qualify as securities. Cryptocurrency regulation remains a battleground as Ripple intensifies efforts to clarify the legal status of digital assets. Ripple’s latest letter to the SEC’s Crypto Task Force is a strategic move to get clearer guidelines based on current securities law. This is especially important since XRP ETF launches are on hold. The goal is to remove mature tokens from outmoded investment contract frameworks. Read More: SEC Commissioner Criticizes Ripple Settlement as Crypto Enforcement Weakens Ripple’s Legal Strategy: Seeking Clarity and Certainty Stuart Alderoty, Ripple’s Chief Legal Officer, recently issued a long letter to the U.S. Securities and Exchange Commission‘s (SEC) Crypto Task Force. The letter posed a very crucial legal question: When does a crypto token stop being a security and an investment contract? Alderoty’s position leans heavily on established legal interpretations rather than new regulatory inventions. He references a legal analysis by Lewis Cohen and colleagues, which clarifies that most fungible crypto assets traded in secondary markets do not meet the criteria to be classified as securities. According to this view, the hallmark of a security—a defined legal relationship between issuer and investor—often disappears once tokens circulate beyond initial sales. Judge Torres’s groundbreaking decision in SEC v. Ripple Labs Inc. strengthens this legal base even more. The court decided that some institutional sales of XRP constituted investment contracts, but XRP itself, especially when it is sold on the secondary market, is not a security. This ruling forms a cornerstone of…

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Filed under: News - @ May 28, 2025 3:25 pm