Ripple urges SEC with a 3-step plan for clear cryptocurrency regulations

Ripple has recently called on the U.S. Securities and Exchange Commission (SEC) to establish clearer regulations for the cryptocurrency market. The company criticized that the current regulations are causing confusion and difficulties for businesses and investors.

Ripple proposes three key steps as follows:

Ripple asserts that the SEC should only regulate assets that truly meet the definition of securities under federal law. The company believes that many digital assets should not be classified as securities, especially those that do not generate profits.

Ripple calls on the SEC to only enforce existing laws without introducing new regulations that could cause further confusion. They emphasize that the creation of new laws should be undertaken by Congress.

Ripple requests that the SEC adopt a more transparent approach in issuing regulations on cryptocurrencies. They have appreciated the SEC clarifying that assets like memecoins are not securities, but emphasize that more guidance is needed to alleviate uncertainty in the market.

Additionally, the legal battle between Ripple and the SEC is nearing an end, as the SEC has decided to withdraw its appeal. This could set a new precedent for the cryptocurrency industry, moving towards a future with clearer regulations.