Crypto: Ripple Proposes Network Maturity Test

Ripple Proposes “Network Maturity” Test for Crypto Token Securities Status

• Ripple Labs suggests a “network maturity” test to determine when crypto tokens are no longer securities.
• The proposed criteria include a $1 billion market value, a 10-year operational network, and an open, permissionless structure.
• The proposal aims to provide clearer guidelines than the SEC’s current “sufficient decentralization” concept.
• Ripple’s legal team submitted this framework in response to the SEC’s inquiry about crypto assets transitioning from securities.
• The test intends to reduce regulatory burdens and clarify token separation from investment contracts.

Ripple Labs has proposed a “network maturity” test with specific criteria like market capitalization and operational history to determine when crypto tokens should no longer be considered securities. This aims to offer clearer guidance compared to existing SEC standards.