Key Takeaways
- • Ripple urged the SEC on October 20 to finalize its proposed Regulation Crypto Assets framework, following a legal battle in which the firm spent more than $150 million.
- • The SEC proposal, introduced in August, would allow qualifying digital asset issuers to raise up to $5 million over four years under one exemption and up to $75 million within 12 months under another with stricter disclosures.
- • A key safe harbour would release a token from investment contract rules once the issuer satisfies its original network commitments.
- • Chainlink, Hedera, Stellar, Aptos, Avalanche and Cardano jointly urged the SEC to define digital commodities explicitly in the final rule text.
- • The SEC is reviewing comment letters ahead of a full commission vote on the final language.
Summary
Ripple urged the US Securities and Exchange Commission to finalize proposed digital asset rules on October 20, according to the primary report, following a legal battle in which the firm spent more than $150 million seeking regulatory clarity. Chief Legal Officer Stuart Alderoty confirmed the submission supports the agency's proposed Regulation Crypto Assets framework, arguing that years of case-by-case enforcement have pushed domestic innovation overseas.
The SEC introduced the framework in August with the stated aim of setting clear boundaries so crypto companies can understand their obligations without facing protracted court challenges. The proposal includes exemptions allowing qualifying digital asset issuers to raise capital without full public registration. Startups could raise up to $5 million over four years under one provision, while a separate exemption permits up to $75 million within a 12-month window under stricter financial disclosures. A central element of the draft is a safe harbour that releases a token from investment contract rules once an issuer satisfies its original network commitments.
Alderoty argued that the agency has full authority to implement the framework. Under the standard Howey test, he said, regulators should evaluate specific issuer promises rather than treating secondary token sales or decentralization metrics as automatic triggers for securities status.
Ripple joined a broader coalition of blockchain foundations that submitted recommendations before the comment window closed. A joint filing by Chainlink, Hedera, Stellar, Aptos, Avalanche and Cardano urged the commission to explicitly define digital commodities within the formal rule text. The article notes that the push reflects widespread industry fatigue with retroactive enforcement, and that the more than $150 million in legal fees Ripple spent battling the SEC is a burden few smaller Web3 startups could absorb. The SEC is reviewing the comment letters ahead of a full commission vote on the final language for Regulation Crypto Assets.
The SEC introduced the framework in August with the stated aim of setting clear boundaries so crypto companies can understand their obligations without facing protracted court challenges. The proposal includes exemptions allowing qualifying digital asset issuers to raise capital without full public registration. Startups could raise up to $5 million over four years under one provision, while a separate exemption permits up to $75 million within a 12-month window under stricter financial disclosures. A central element of the draft is a safe harbour that releases a token from investment contract rules once an issuer satisfies its original network commitments.
Alderoty argued that the agency has full authority to implement the framework. Under the standard Howey test, he said, regulators should evaluate specific issuer promises rather than treating secondary token sales or decentralization metrics as automatic triggers for securities status.
Ripple joined a broader coalition of blockchain foundations that submitted recommendations before the comment window closed. A joint filing by Chainlink, Hedera, Stellar, Aptos, Avalanche and Cardano urged the commission to explicitly define digital commodities within the formal rule text. The article notes that the push reflects widespread industry fatigue with retroactive enforcement, and that the more than $150 million in legal fees Ripple spent battling the SEC is a burden few smaller Web3 startups could absorb. The SEC is reviewing the comment letters ahead of a full commission vote on the final language for Regulation Crypto Assets.
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