⚖️ After years of litigation, Ripple is now on the SEC’s side
On October 20, Ripple submitted a comment letter to the SEC, publicly supporting the agency’s proposed regulatory framework for crypto assets (Regulation Crypto Assets). Interestingly, the letter was submitted after the formal public comment period had ended.
Chief Legal Officer Stuart Alderoty’s central point was straightforward: the old case-by-case approach to enforcement pushed innovation overseas.
A few points in the proposal worth noting:
🔹 It retains the Howey test: a security is an “investment contract,” not the token itself
🔹 Small-scale offerings are exempt, with an annual cap of $75 million
🔹 Once an issuer has fulfilled its commitments, it enters a safe harbor
🔹 Ripple has spent over $150 million on its own lawsuit to seek regulatory clarity, so it is calling for the proposal to be implemented as soon as possible
My take: The people who best understand how costly “regulatory uncertainty” can be are those who have been sued. If “the token itself is not a security” makes it into the rules, that could mean more for the entire altcoin market than any ETF approval. But a proposal is still just a proposal; it has to go through the proper process before it takes effect, so don’t rush to treat it as a positive development that has already happened.
Do you think clear rules would bring crypto projects back to the U.S., or has the industry already taken root overseas?
#Ripple #XRP #SEC #CryptoRegulation
On October 20, Ripple submitted a comment letter to the SEC, publicly supporting the agency’s proposed regulatory framework for crypto assets (Regulation Crypto Assets). Interestingly, the letter was submitted after the formal public comment period had ended.
Chief Legal Officer Stuart Alderoty’s central point was straightforward: the old case-by-case approach to enforcement pushed innovation overseas.
A few points in the proposal worth noting:
🔹 It retains the Howey test: a security is an “investment contract,” not the token itself
🔹 Small-scale offerings are exempt, with an annual cap of $75 million
🔹 Once an issuer has fulfilled its commitments, it enters a safe harbor
🔹 Ripple has spent over $150 million on its own lawsuit to seek regulatory clarity, so it is calling for the proposal to be implemented as soon as possible
My take: The people who best understand how costly “regulatory uncertainty” can be are those who have been sued. If “the token itself is not a security” makes it into the rules, that could mean more for the entire altcoin market than any ETF approval. But a proposal is still just a proposal; it has to go through the proper process before it takes effect, so don’t rush to treat it as a positive development that has already happened.
Do you think clear rules would bring crypto projects back to the U.S., or has the industry already taken root overseas?
#Ripple #XRP #SEC #CryptoRegulation