Ripple Backs SEC’s Crypto Asset Regulation Plan, Urges Clear Framework

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Ripple has backed the U.S. Securities and Exchange Commission's (SEC) proposals for crypto asset regulation while urging a clear and transparent framework for the U.S. market. The company highlighted that prolonged regulatory uncertainty and the SEC's history of policymaking through enforcement actions have prompted a significant shift of crypto innovation to jurisdictions outside the US. Stuart Alderoty, Ripple's Chief Legal Officer, reiterated the view that the SEC possesses both the legal authority and the responsibility to introduce a new framework. He pointed out the drawbacks of a case-by-case enforcement approach, stating that a clear and consistent set of rules is necessary for market participants to operate with confidence. The SEC's proposed rules in August include exemptions from standard securities registration procedures, allowing qualifying crypto projects to raise up to $5 million over four years or up to $75 million annually. Ripple also argued that decentralization alone should not serve as the primary benchmark for classifying tokens as securities, as this could lead to subjective assessments.