- Ripple urges the SEC to enforce existing laws, not expand authority, stressing Congress should define crypto regulations.
- Ripple sees the SEC’s meme coin stance as a model for regulatory clarity, advocating consistent and lawful oversight.
- The SEC drops its appeal against Ripple, marking a legal win and reinforcing calls for clearer crypto regulations.
Ripple has strongly urged the SEC’s Crypto Task Force to return to first principles and remain within its statutory authority as Ripples’s Chief Legal Officer Stuart Alderoty reports on his post on X. The company emphasized that regulatory clarity is crucial for the crypto market.
In response to SEC Commissioner Hester Peirce’s call for public input on crypto taxonomy rules, Ripple reiterated that Congress should define new legal frameworks. The company criticized previous SEC administrations for distorting regulations to expand jurisdiction beyond securities laws.
Ripple’s Call for Regulatory Clarity
Ripple’s letter to the SEC, dated March 21, underscored that Congress should dictate market structure laws. It stated that the SEC’s role is to prevent fraud using existing legal provisions, rather than unilaterally redefining its authority. The company highlighted that agencies only possess powers explicitly granted by Congress. The SEC should focus on enforcing existing laws instead of altering the legal landscape.
Also, Ripple pointed to the SEC’s clear position on meme coins. The regulator recently affirmed that meme coins are outside the scope of securities rules. Furthermore, in February, SEC Commissioner Hester Peirce pointed out that most meme currencies are still outside the agency’s jurisdiction.
SEC Drops Appeal, Marking Victory for Ripple
Ripple CEO Brad Garlinghouse announced on Wednesday that the SEC had decided not to appeal in the case against Ripple. The SEC had accused Ripple of selling XRP as an unregistered security way back in 2020, and this led to a long-fought court battle that has finally ended with this move.
Judge Analisa Torres’ 2023 decision that XRP was not a security when sold to individual investors gave the corporation a partial win. XRP sales made by institutions, however, were considered unregistered securities transactions.
Brad Garlinghouse Praised the SEC’s action as a great win for the company and the whole crypto universe. Speaking at the Digital Assets Summit in New York, he noted that the lengthy court battle exposed the flaws in the system of regulation. He argued that the SEC’s actions were not in good faith, particularly because there were no investor losses or victims of the case.
