Crypto exchange Ripple has asked the SEC to focus on clear regulatory guidance for crypto companies, avoiding previous enforcement strategies.
Background on Ripple's Appeal
Ripple contends that past SEC actions created confusion in the crypto industry as the agency enforced standards not codified in law. In February 2025, Ripple responded to an SEC statement, noting that previous strategies were not aligned with the Crypto Task Force's goals.
Criticism of SEC and Ripple's Proposals
Ripple's chief legal officer, Stuart Alderoty, accused the SEC of thriving on confusion to obscure its failure to adhere to the law. The company insists on the need for the SEC to return to first principles. Ripple also noted that the SEC lacks jurisdiction over most digital assets and transactions.
Legal Issues and Future Steps
Ripple accused the SEC of distorting legal requirements, including the Howey Test, to classify digital assets as securities. The exchange supports safe harbor provisions and regulatory sandboxes, believing they foster the growth of blockchain projects.
Ripple believes all future regulation should be based on existing laws to provide clear guidance for crypto firms.
