Add as a preferred source on GoogleRipple Backs SEC Crypto Rule Proposal, Seeks Clarity on Tokens
Ripple argues that an investment contract, rather than the token involved, is the security. Its chief legal officer says the company spent more than $150 million seeking regulatory clarity.
Ripple submitted a comment letter backing the SEC’s proposed Regulation Crypto Assets, urging the agency to distinguish investment contracts from the tokens involved when applying securities law.
Ripple Chief Legal Officer Stuart Alderoty argued that the SEC has authority to adopt the proposal. He said it follows the Howey test, which determines whether an arrangement is an investment contract.
Alderoty said years of enforcement focused on individual cases and tokens had pushed crypto innovation abroad. He said Ripple spent more than $150 million seeking clarity on its legal obligations. The company wants rules that apply across the digital asset industry.
The rule remains a proposal.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.