Ripple spent $150M fighting the SEC lawsuit – Now it wants clear crypto rules

Ripple has called on the U.S. Securities and Exchange Commission to finalize its draft regulations for crypto assets, according to its SEC comment letter submitted on October 20, 2026. Ripple argues that current federal securities law already provides a basis for regulating crypto assets but does not specifically define what qualifies an asset as a security. Under the proposal, investment contracts, rather than the crypto assets themselves, would be treated as securities. Ripple contends this distinction could reduce uncertainty for assets issued after the time frame established by the contract expires.

Ripple argued that inconsistent enforcement has pushed innovation offshore and cited more than $150 million spent clarifying legal questions about how regulators view its products and services. The article notes that the final version of the SEC's rules will ultimately determine whether the changes create long-term regulatory certainty.

The proposed framework also includes fundraising provisions intended to make it easier for crypto startups to raise capital in the U.S. Tier 1 permits raises of up to $20 million per year, while Tier 2 extends that limit to $75 million. Issuers using either tier must first obtain SEC approval and make disclosures covering token economics, governance, and development risk. Tier 2 issuers must also submit audited financials, which raises compliance costs. U.S.-based eligibility requirements are strict and may exclude non-U.S. entities, although converting to a U.S. entity could allow foreign projects to use the exemption. Some smaller projects may still find it difficult to meet all requirements.

The push for clearer rules comes amid questions about whether regulatory clarity can restore confidence in U.S. crypto markets. According to the article, venture capital funding for crypto-related startups totaled approximately $5.6 billion across 384 deals in Q2 2026, with domestically based entities receiving 73.5% of capital invested. Rising U.S. startup formation and domestic token issuance would signal progress, while continued offshore expansion could expose the framework's limits.