Ripple Reaches Out to SEC with 3 Strong Proposals to Clear Up U.S. Crypto Regulation

Jakarta, Pintu News – Leading blockchain company, Ripple XRP->Current XRP PriceRp 0Market Cap-Trading Volume-Circulating Supply-, officially filed a response letter with the United States Securities and Exchange Commission (SEC), calling for major reforms in crypto regulation.

This step was taken in response to an open request from Hester Peirce, SEC Commissioner and head of the SEC’s Crypto Task Force, who previously requested public input regarding the classification of digital assets.

In its letter, Ripple emphasized the importance of legal clarity and accused the SEC’s previous leadership of deliberately creating confusion in the cryptocurrency industry.

Ripple also offered three concrete solutions to end the uncertainty that has been shackling the crypto market.

Ripple’s Sharp Critique of the SEC’s Old Leadership

Ripple has openly criticized the SEC’s approach under Gary Gensler, calling it inconsistent, overly complicated, and legally weak.

The company alleges that the SEC deliberately created confusion in order to secretly expand its authority over digital assets that do not fall under the category of securities.

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According to Ripple, this approach stifles innovation and creates fear among crypto industry players. Ripple states that unclear regulations make it difficult for investors and companies to make the right legal and business decisions.

Ripple highlighted that the indiscriminate use of the Howey test became a weapon for the SEC to claim jurisdiction over transactions that did not actually involve securities.

In fact, according to federal laws such as the Securities Act 1933 and the Exchange Act 1934, only assets with explicit investment contracts can be categorized as securities.

Ripple Proposes 3 Solutions for More Definitive Crypto Regulation

Ripple proposes three strategic steps to end the regulatory chaos.

First, the SEC was asked to return to its original principle of only regulating what is legally classified as securities. Ripple asserts that digital assets that do not provide yield or rights to profits should not be considered securities.

Secondly, Ripple demands that the SEC stop creating new confusing regulations and stay within the bounds of its existing legal authority. Ripple emphasized that only the US Congress has the right to make new laws, while the SEC should only execute and enforce existing laws.

The third solution Ripple proposes is to provide clear and predictable guidelines for the crypto industry. Ripple applauds the SEC’s move to declare that meme coins like Pepe Coin PEPE->Current PEPE PriceRp 0Market Cap-Trading Volume-Circulating Supply- are not securities, and requests that a similar approach be applied to other crypto assets.

Staking and Token Sales Are Not Securities, Ripple Insists

Ripple also highlighted issues related to staking mechanisms that are common across various decentralized blockchain networks.

According to Ripple, staking does not meet the definition of a securities offering because the reward is generated algorithmically, rather than from the managerial efforts of a third party. Therefore, staking activities should not be subject to registration obligations as securities.

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In addition, Ripple stated that selling crypto tokens directly does not necessarily mean conducting capital raising or investment contracts.

The company feels that there needs to be a clear distinction between ordinary token sales and actual securities offerings, so that not all crypto transactions are treated the same legally.

SEC vs Ripple Lawsuit Nearly Settled, Optimism Reignited

In the midst of its fight against the SEC, Ripple received good news after the agency withdrew its appeal lawsuit recently. This marks an important turning point in the legal battle that has been going on for years and gives new hope to the cryptocurrency market.

With only Ripple’s cross-appeal left to resolve, many legal observers expect the case to end soon through an amicable agreement.

The market also responded positively to this news. The price of Ripple (XRP) experienced a sharp spike, with analysts such as Egrag Crypto predicting that XRP could jump up to Rp82,840 (equivalent to USD $5) or even break Rp165,680 (equivalent to USD $10).

Investor optimism is back, with hopes that the crypto industry will soon get the legal certainty it has been waiting for.

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Reference:

• Coingape. Ripple Provides Guidance to US SEC on Crypto Regulation, Here’s All. Accessed on March 24, 2025
• Coinpedia. Ripple Urges SEC for Clearer Crypto Rules, Proposes 3 Solutions. Accessed on March 24, 2025
• The Crypto Basic. Ripple Writes to SEC, Proposes 3 Solutions to Resolve Crypto Regulatory Confusion. Accessed on March 24, 2025