In the XRP community, Ripple's recent submission to the SEC regarding the status of the XRP token has sparked significant discussions. This event comes amid broader conversations about cryptocurrency regulation.
Ripple's Submission to the SEC
JackTheRippler, a prominent figure in the XRP community, recently highlighted a significant filing by Ripple with the U.S. Securities and Exchange Commission (SEC) dated May 27, 2025. This correspondence addresses a fundamental regulatory question: when does a crypto asset, originally distributed under an investment contract, cease to be considered a security? This follows a meeting held on May 20 between Ripple and the SEC’s crypto task force.
Reinforcing XRP's Status with Legal Precedents
Ripple's letter draws from established legal analysis, particularly the 2022 paper, The Ineluctable Modality of Securities Law. The company argues that current law does not support classifying most fungible crypto assets as securities when traded on secondary markets. Ripple cites a ruling from Judge Analisa Torres in July 2023, which determined that Ripple’s programmatic token sales and other secondary market transactions did not qualify as securities.
Proposing Maturity-Based Regulations
In addition, Ripple proposes using 'maturity' as a clearer regulatory standard than 'decentralization.' Under this approach, a digital asset would no longer be regulated as a security once its network becomes sufficiently independent. Ripple suggests indicators such as market capitalization, operational history, and lack of unilateral control as signs of maturity.
Ripple's submission to the SEC reflects its strong stance on the status of XRP as a digital asset, playing a crucial role in its ongoing legal battles with regulators, which may significantly impact the cryptocurrency market.
