BTC
ETH
SOL
XRP
BNB
TON
DOT
LTC
POL
HBAR
NEAR
ARB
UNIRipple says SEC crypto plan needs trading safeguards in 20 Oct filing
Ripple has backed the SEC's proposed crypto framework but asked for protections covering exchanges, brokers and token holders, arguing that binding rules are better than case-by-case enforcement.
Why it matters: The SEC's framework would set the rules for crypto fundraising and token trading in the US, and Ripple's requests show where industry and the regulator still differ.
Key points
- Ripple's 20 Oct submission supports the SEC's Regulation Crypto Assets framework, which would allow fundraising exemptions of up to $5m over four years or $75m a year.
- Chief Legal Officer Stuart Alderoty and other Ripple attorneys argue the investment contract, not the crypto asset, is the security.
- Ripple wants relief from state registration rules extended to dealers and opposes income or wealth thresholds for resale buyers.
Ripple has told the SEC that its proposed crypto framework should become binding rules, with safeguards for trading, in a submission filed on 20 Oct. The blockchain payments company said existing law already authorises the framework, even though the CLARITY Act remains stalled. Chief Legal Officer Stuart Alderoty and other Ripple attorneys signed off on the response, Bitcoin.com News reports.
Under the SEC's proposed Regulation Crypto Assets, some crypto fundraising would qualify for registration exemptions of up to $5m over four years or $75m annually, with disclosures and antifraud protections still applying. Ripple argues that the investment contract, rather than the token itself, is the security, and that token status should turn on what issuers promise. It says shared hopes of price gains alone do not create a common enterprise, though arrangements such as automated buybacks or burns that send company revenue to holders can.
Ripple also seeks protection for good-faith reliance on its proposed Form TR certification, which issuers would use to show an investment contract has ended. It warns that leaving dealers outside relief from state registration could limit access, widen spreads and push trading offshore. Other requests cover overdue issuer filings and confirmation that holding, lending, pledging or staking tokens alone does not require holder registration.
What to watch: The SEC is considering the comments filed by the 20 Oct deadline as it works on the proposed framework.
Live updates on NewsFeeds:RegulationDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.