Ripple urged the U.S. Securities and Exchange Commission in an Oct. 20 submission to adopt binding crypto rules instead of relying on case-by-case enforcement. The company argued that existing law permits the proposed framework despite the stalled CLARITY Act, and that an investment contract—not the crypto asset itself—is the security.
Ripple said tokens should qualify for a proposed safe harbor after an issuer’s essential promises are fulfilled, abandoned or terminated, provided it makes and intends no new such promises. Antifraud liability would continue. Ripple also sought safeguards for issuer filings and ordinary broker-dealer trading, and opposed income or wealth thresholds for resale buyers.
