Ripple reached out to the SEC for clear regulations in the crypto space, amid efforts by the commission to clear up confusion.
Ripple Urges for Clarity
Ripple criticized the SEC's previous leadership under Gary Gensler, stating that their crypto guidelines were confusing and lacked solid legal grounding. Ripple pointed out that past leaders seemed to create market confusion to cover their failure to follow the law. To address this, the company proposed three solutions.
Back to the Basics
Firstly, Ripple suggested the SEC should return to basics and regulate only assets clearly defined as securities under federal laws. The company argued that many digital assets, particularly those not generating profits, shouldn't be classified as securities.
Stick to Existing Laws
Ripple also emphasized the need for the SEC to adhere to existing laws instead of creating new ones, which could lead to more confusion. The company highlighted that only Congress has the authority to create new laws, and the SEC should focus on enforcing current regulations.
Ripple insists that the SEC provide clarity in crypto regulation, noting that this will help eliminate confusion. The Ripple vs SEC lawsuit is also nearing its conclusion, as the SEC has withdrawn its appeal against Ripple, leaving only the company's cross-appeal.