Crypto: Ripple Guides SEC on Regulation

Ripple Calls for Clearer Crypto Regulations in Response to SEC

• Ripple submitted a response to the SEC’s request for public input on digital asset classification.
• The company emphasized that the SEC lacks authority over most digital assets under current laws.
• Ripple criticized the use of the Howey test for defining investment contracts in crypto.
• The company urged the SEC to use traditional legal terms like “investment contract” for clarity.
• Ripple stated that staking mechanisms do not constitute securities offerings.

In its response, Ripple urged the SEC to adhere to existing laws and avoid expanding its regulatory scope without Congressional approval, emphasizing the need for clear and consistent crypto regulations.