{"id":29083,"date":"2025-05-28T18:01:31","date_gmt":"2025-05-28T18:01:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=29083"},"modified":"2025-05-28T18:01:31","modified_gmt":"2025-05-28T18:01:31","slug":"ripple-submits-new-letter-to-secs-crypto-task-force-heres-why","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=29083","title":{"rendered":"Ripple Submits New Letter To SEC\u2019s Crypto Task Force \u2014 Here\u2019s Why"},"content":{"rendered":"
\n

Ripple Labs has fired a fresh legal volley in Washington, dispatching a 4-page memorandum to the US Securities and Exchange Commission\u2019s Crypto Task Force on 27 May. Chief legal officer Stuart Alderoty announced<\/a> the filing on X, stressing that it responds directly to Commissioner Hester Peirce\u2019s \u201cNew Paradigm\u201d speech of 19 May, which asked the pivotal question: \u201cWhen does a non-security crypto asset that was once part of an investment contract become separated from that contract?\u201d<\/p>\n

Ripple Pushes SEC For Clarity On XRP<\/h2>\n

In the opening lines of the letter Ripple thanks staff for a 20 May meeting and frames its submission as a doctrinal answer to Peirce\u2019s query. It leans on the 2022 academic treatise The Ineluctable Modality of Securities Law by Lewis Cohen et al., quoting it in full: \u201c[T]here is no current basis in the law relating to \u2018investment contracts\u2019 to classify most fungible crypto assets as \u2018securities\u2019 when transferred in secondary transactions\u2026\u201d Ripple argues that the paper remains \u201cthe most accurate reflection of existing law.\u201d<\/p>\n

The company advances a two-pronged litmus test for determining when a token has definitively \u201csevered\u201d from an accompanying investment contract. Under Ripple\u2019s proposal, any later sale of the asset is presumed not to be a securities transaction unless (i) a material promise made to the original purchaser remains outstanding and (ii) the subsequent holder retains enforceable rights arising from that promise. Examples of qualifying promises, the letter states, would include commitments to build a functional blockchain or to provide dividends\u2014whereas \u201cgeneral public statements or puffery should not qualify.\u201d<\/p>\n

Ripple positions its framework as consistent with Judge Analisa Torres\u2019s landmark July 2023 ruling<\/a>, which found that XRP itself is not a security, even though certain institutional sales had been investment contracts. By invoking that ruling Ripple reminds the Commission that secondary-market trading of XRP\u2014blind order-book sales in particular\u2014has already been judicially blessed as non-securities activity.<\/p>\n

While recognizing the SEC\u2019s worry that bad actors might exploit legal lacunae, Ripple tells the agency that closing any genuine gap is \u201cCongress\u2019s\u2014not the SEC\u2019s\u2014to fill.\u201d In the interim, Ripple endorses a \u201cwell-designed safe harbor\u201d but warns that concepts such as \u201cfully functional\u201d or \u201csufficiently decentralized\u201d are too malleable to anchor regulatory certainty.<\/p>\n

Commissioner Peirce\u2019s own remarks supply the backdrop. In \u201cNew Paradigm\u201d she conceded that \u201cmost currently existing crypto assets in the market are not [securities]\u201d and highlighted the difficulty of \u201cdetermining when a non-security crypto asset subject to an investment contract separates from the investment contract.\u201d
\nPeirce floated, among other options, a time-limited safe harbor. Ripple seizes on that momentum, contending that its bright-line test is superior to \u201cdecentralisation\u201d metrics and would let functional networks circulate tokens \u201copenly, transparently, and permissionlessly\u201d without imposing disclosures that suggest control where none exists.<\/p>\n

The submission arrives as the long-running SEC v. Ripple litigation edges toward final resolution. Earlier this month the Commission lodged a proposed settlement<\/a> that would cap Ripple\u2019s institutional-sale liability and lift the remaining injunction on XRP distributions, but the court has not yet approved<\/a> the pact.<\/p>\n

Market reaction has been muted. XRP continues to trade near the $2.30 zone.<\/p>\n

\"XRP<\/div>\n","protected":false},"excerpt":{"rendered":"

Ripple Labs has fired a fresh legal volley in Washington, dispatching a 4-page memorandum to the US Securities and Exchange Commission\u2019s Crypto Task Force on 27 May. Chief legal officer Stuart Alderoty announced the filing on X, stressing that it responds directly to Commissioner Hester Peirce\u2019s \u201cNew Paradigm\u201d speech of 19 May, which asked the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-29083","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29083"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29083\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}