According to PANews, Ripple's Chief Legal Officer Stuart Alderoty has announced that the company has submitted a supplementary letter to the U.S. Securities and Exchange Commission's (SEC) cryptocurrency task force. The letter focuses on the issue of when digital assets can be separated from investment contracts, addressing concerns raised by SEC Commissioner Peirce in her 'New Paradigm' speech.
In the letter, Ripple references legal analyses from 2022 and the ruling in the 2023 SEC v. Ripple Labs case, emphasizing that XRP itself is not a security. Ripple argues that most crypto assets should not be considered securities when traded in secondary markets. The company also suggests that the SEC introduce a 'safe harbor' mechanism to provide clearer compliance guidance for market participants. Ripple proposes criteria based on network maturity to help determine which digital assets have separated from investment contracts.
Ripple expresses its desire to continue dialogue with the SEC to promote transparency and clarity in cryptocurrency market regulations, aiming to provide a clearer direction for industry development.
