Give Clear Rules; If Not Here’s a Few Solutions
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Urges SEC for clear digital asset regulations, criticizing past approach Argues SEC lacks authority over most digital assets, Congress should lead Suggests safe harbors and regulatory sandboxes for crypto innovation Ripple has submitted a formal response to the U.S. SEC Crypto Task Force, urging the agency to clarify its approach to digital asset regulation. In a letter addressed to Commissioner Hester Peirce, Ripple criticized the SEC’s past leadership for creating confusion and called for a return to straightforward, lawful guidance. Stuart Alderoty, Ripple’s Chief Legal Officer, shared the document on X, emphasizing the need for regulatory relief. He referenced the Bob Dylan lyric, “There’s too much confusion, I can’t get no relief,” arguing that the previous SEC administration used this uncertainty to justify enforcement actions against crypto companies. Ripple’s Core Arguments Against the SEC’s Approach Ripple asserts that the SEC oversteps its authority over most digital assets, arguing they don’t meet the legal definition of securities. The company maintains that it is Congress, not the SEC, that should establish rules for the crypto market. The response strongly urges the SEC to offer clear and straightforward guidance rather than continue its “regulation by enforcement” approach. Negative Market Impact of SEC Enforcement Actions Ripple also highlights the negative market impact of SEC enforcement actions. It points to the 2020 lawsuit against Ripple, which led to a 70% drop in XRP’s price, wiping out $15 billion in market value. Following the lawsuit, many cryptocurrency exchanges delisted XRP, restricting access for U.S. investors. Ripple notes that similar price declines occurred with Solana, Cardano, and Polygon after the SEC took action against major crypto exchanges. Related: Ripple’s SEC Victory: Appeal Dropped, But SEC Silence Leaves “Officially Over?” Question Hanging Use the Original Howey Test to Define Securities Ripple’s letter implores the SEC to use the…
Filed under: News - @ March 22, 2025 8:26 am