Blockchain payments leader Ripple has submitted a formal response to the SEC, urging the agency to provide much-needed clarity for the crypto industry. This comes after SEC Crypto Task Force head Hester Peirce called for public input on establishing clearer crypto taxonomy rules last month.
Ripple criticized the SEC’s past leadership, particularly under Gary Gensler, for creating regulatory confusion through overly complex and legally unsupported guidance. The company argued that this approach has hindered innovation and compliance in the crypto space.
To address these issues, Ripple proposed three key solutions:
1️⃣ **Return to First Principles**: Ripple urged the SEC to regulate only assets that meet the legal definition of securities under federal law. The company emphasized that many digital assets, especially those without yield or profit-sharing features, should not be classified as securities.
2️⃣ **Stay Within Statutory Bounds**: Ripple called on the SEC to enforce existing laws rather than creating new rules that could further muddy the waters. The company stressed that only Congress has the authority to establish new laws, and the SEC should defer to lawmakers on this front.
3️⃣ **Provide Clear Guidance**: Ripple praised the SEC’s Corporation Finance Division for clarifying that meme coins are not securities, setting a precedent for concise regulatory clarity. The company urged the SEC to adopt a similar approach across the crypto market to end ongoing confusion.
Ripple’s proposals come as the company nears the end of its lengthy legal battle with the SEC. With the SEC dropping its appeal against Ripple, the focus now shifts to Ripple’s cross-appeal, which many expect to be resolved soon.
This push for clarity is crucial for the entire crypto industry, as regulatory uncertainty continues to stifle innovation and growth. Let’s hope the SEC takes these recommendations seriously!
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*Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.*
