Ripple Pushes SEC for Clear Crypto Rules: What It Means for XRP

Ripple urges the SEC to clarify crypto regulations, arguing that tokens like XRP should not be treated as securities after initial obligations end. The company calls for rules based on legal rights, not decentralization or speculation.

Ripple has submitted a series of letters to the SEC Crypto Task Force, urging regulators to clarify the distinction between crypto assets and securities transactions. Ripple argues that regulatory frameworks should focus on enforceable legal rights and contractual obligations, rather than subjective standards like decentralization or speculative trading behavior. The company contends that once an issuer’s original fundraising obligations have ended, tokens such as XRP should no longer be subject to securities laws, and that treating all subsequent transactions as securities creates unnecessary legal uncertainty. Ripple warns that blurring the lines between assets and securities transactions could lead to regulatory overreach and hinder industry growth. The company also criticizes the use of decentralization as a regulatory benchmark, calling it unreliable and variable. Ripple supports fit-for-purpose disclosures and emphasizes that mature crypto assets traded on secondary markets should be governed by commodity-style rules. Meanwhile, Senator Elizabeth Warren has pressed the SEC for clarity on how it will protect retirement savers as crypto products are integrated into 401(k) plans, raising concerns about fees, transparency, and market risks.