Key dealers
- Ripple claims that SEC should focus on existing statutes and postpone new crypto regulations to Congress.
- Ripple criticizes the former Sec administration’s application of the Howey test as distorted and complex.
Ripple has urged Sec to adhere to existing statutes and have Congress establish new legal framework for crypto. According to the company, the supervisory authority should focus on the prevention of fraud, use laws that already exist and submit market structure definitions to the legislative body.
“Congress is actively considering market structure and stablecoin legislation. It is the role of decision makers to establish new legal standards for crypto assets,” pronounced Ripple in March 21 letter to sec.
Ripple claimed that the Sec’s authority is limited to securities as defined by existing statutes and should not be expanded unilaterally.
“As the crypto for the working group seems to recognize, SEC should return to the first principles and, within the limits of existing statutes, strive to provide a simple market guidance that has been absent so far,” stated Ripple in his letter.
“Agency has only the powers given by Congress, and enabling legislation is generally not an open book that the agency can add pages and change the plot line,” the company added.
The company praised Sec’s latest statement about MEME coins as a model strategy and noted its clear articulation based on existing law that MEME coins fall outside federal securities and Sec -Attoris diction.
SEC Commissioner Hester Peirce also said in an interview in February with Bloomberg Crypto that many Meme coins probably probably fall outside SEC’s regulatory extent.
Ripple criticized the previous Sec administration’s application of the Howey test and claimed it was “weapon” and “distorted” to expand Sec -Kjuris diction.
The company pointed out several questions with Sec’s previous interpretations, including how “speculation” was incorrectly replaced “investment” and how decentralization became a concept for assets to “magical morph from security status to non-security and back again.”
Ripple emphasized the need for SEC to comply with the original intention of the Howey test and existing securities laws – an enforceable agreement where one party invests and another promises efforts for profit. Without this, a token sale is not a security.
For return -generating arrangements, Ripple claimed that returns generated algorithmically by protocols beyond all the party’s control should not be regarded as securities, as they are basic different from profits served through third -party management efforts.
The company also expressed support for commissioner Peirce’s legislative proposal, but proposed that they be implemented only after Congress establishes clear legislation on market structure and legislative monitoring delegations.
Ripple’s letter is part of the ongoing dialogue between the crypto industry and Sec, especially Sec Crypto Task Force.
The supervisory authorities gather perspectives from industry players on how to regulate digital assets. By far, representatives from many units, such as Coinbase, Nasdaq, A16Z and Robinhood, have submitted their written input to Sec.
Ripple’s letter comes after the CEO Brad Garlinghouse declared Wednesday that SEC is withdraw his enforcement bid Against the company, which ended the year-long legal battle that caused about $ 15 billion in losses for XRP holders.
