Ripple filed a comment letter supporting the SEC’s proposed Regulation Crypto Assets on October 20, urging the agency to finalize its proposed crypto rules to protect investors and keep innovation in the United States. The bottom line: clear regulations are needed to replace years of case-by-case uncertainty with a clear legal framework.
Background And Context
By the numbers, Ripple spent more than $150 million seeking legal clarity, according to Ripple Chief Legal Officer Stuart Alderoty. The figure that matters is the $150 million, which highlights the need for clear rules to avoid costly court battles. Investors will note that the SEC proposal includes fundraising exemptions of up to $5 million over four years and $75 million within 12 months, subject to additional disclosure and financial reporting requirements. The proposal also includes a safe harbor to help determine when an issuer has fulfilled its original promises and a token is no longer linked to an investment contract.
Industry Support And Feedback
Ripple is not alone in its push for clearer rules. A group including Chainlink, Hedera, Stellar, Aptos, Avalanche, and Cardano has also submitted a joint letter calling for clearer rules, including recognition of digital commodities in the rule text. The SEC is now reviewing industry feedback, and although the main comment period ended on October 20, the regulator is expected to continue accepting comments as it considers changes before a final commission vote. Alderoty noted that a token is not automatically a security just because it was sold through an investment contract, and that the focus should be on the promises made by the issuer and whether those commitments have ended.
Regulatory Uncertainty And Innovation
The SEC introduced its proposed Regulation Crypto Assets in August, aiming to provide a clear legal framework for the industry. Years of case-by-case enforcement have pushed crypto innovation overseas, according to Alderoty. Clear rules would help companies understand their legal duties without facing years of costly court battles, and could attract investment, protect investors, and help keep crypto innovation in the U.S. The proposal offers a more reliable process for exchanges, brokers, and other market participants, which is essential for the growth and development of the industry.
Next Steps And Implications
The SEC’s proposed Regulation Crypto Assets has significant implications for the crypto industry, and the final outcome will be closely watched by investors and industry participants. By the numbers, the proposal has the potential to provide clarity and certainty for crypto businesses and adoption, which could lead to increased investment and innovation in the industry. Investors will note that the SEC’s decision will have a significant impact on the future of crypto regulation in the United States, and the industry is eagerly awaiting the final outcome. The figure that matters is the potential for clear regulations to replace years of case-by-case uncertainty, which could be a major step forward for the industry.
Ripple Expands Institutional Offerings
Separate from its regulatory advocacy, Ripple has expanded its institutional trading business by adding real-world asset perpetual swaps to Ripple Prime. The service offers 24/7 exposure to more than 100 markets, including stocks, ETFs, metals, energy, and currencies, broadening crypto prime brokerage access to traditional assets.
The company behind XRP and RLUSD launched support for real-world asset perpetual swaps through its prime brokerage, Ripple Prime. The offering allows clients exposure to more than 100 reference markets 24/7, spanning stocks, ETFs, metals, energy, currencies, and other traditional assets.
Sources
- Ripple Backs SEC’s Proposed Crypto Regulation, Calls for End to Case-by-Case Enforcement | Ripple Social | CryptoRank.io
- XRP News: Ripple Urges SEC to End Crypto Regulation Uncertainty in the U.S.
- Ripple (XRP) Deepens Wall Street Push With 24/7 RWA Swaps for Institutions | Ripple Social | CryptoRank.io
Photo: David (Flickr user: dbking) (CC BY 2.0)
