Ripple filed a supplemental letter with the SEC to explore when digital assets will be able to be separated from investment contracts

PANews
PANews
XRP-3.54%

PANews reported on May 28 that Ripple Chief Legal Officer Stuart Alderoty announced that Ripple has submitted a supplemental letter to the U.S. Securities and Exchange Commission (SEC) Cryptocurrency Task Force, focusing on the issue of when digital assets can be separated from investment contracts. The move responds to questions raised by SEC Commissioner Peirce in his "New Paradigm" speech.

Citing a 2022 legal analysis and the 2023 SEC v. Ripple Labs decision, Ripple emphasized that XRP itself is not a security and argues that most crypto assets should not be considered securities in secondary market transactions. Ripple also suggested that the SEC introduce a "safe harbor" mechanism to provide market participants with clearer compliance guidance, and proposed a network maturity-based judgment standard to help clarify which digital assets have been removed from investment contracts.

Ripple said it hopes to promote transparency and clarity in the rules of the crypto market through ongoing dialogue with the SEC and provide a clearer direction for the development of the industry.

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