Ripple has filed a comment letter supporting the Securities and Exchange Commission's proposed Regulation Crypto Assets, urging the agency to finalize the rules. The proposal rests on the Howey test, treating the investment contract rather than the crypto asset itself as the security, and builds on a prior joint SEC-CFTC harmonization initiative.
Ripple Chief Legal Officer Stuart Alderoty said, "We support the proposal, and the SEC has clear authority to adopt it." He added that previous "case by case, coin by coin" enforcement has pushed crypto innovation offshore, and claimed the industry needs holistic rules for digital assets, calling the Regulation Crypto Assets framework a major move.
Alderoty clarified that the investment contract is a security, not a token. He cited that Ripple has spent more than $150 million to get clarity on XRP not being a security. "What matters is what an issuer actually promised and when those promises end, not a subjective decentralization test," he added. Clear rules grounded in existing law will bring capital, investor protection, and innovation to the U.S., according to Alderoty.
Chainlink and Other Networks Join Ripple
Chainlink partnered with Cardano, Hedera, Stellar, Aptos, and Avalanche in urging the SEC to codify its digital commodity framework. With Ripple seeking to exempt certain crypto assets from full SEC securities registration, the Blockchain Association also urged raising the startup exemption limit from $5 million to $10 million.
"Builders need lasting certainty. Codifying this progress would be a meaningful step toward keeping America the home of digital asset innovation," said Chainlink head of policy Taylor Barr.
Comment Period and Next Steps
Although the official comment period for the SEC's proposed Regulation Crypto Assets closed on October 20, the commission will continue accepting public feedback after the deadline, according to journalist Eleanor Terrett. "While we encourage commenters to submit their feedback by the deadline, the Commission will continue to accept public comments on rule proposals after the comment period closes."
The new crypto rules would create new fundraising exemptions for crypto issuers raising capital in the U.S., while the CLARITY Act developments remain uncertain ahead of midterm elections.
