Ripple Pushes SEC for Regulatory Clarity After $150M Legal Battle

Ripple’s submission supports the SEC’s proposed Regulation Crypto Assets, which offers a framework for determining when an issuer’s managerial obligations have concluded. Chief Legal Officer Stuart Alderoty emphasized that the industry cannot rely on years of litigation to decipher federal requirements. The company argues that the SEC should focus strictly on an issuer’s express promises to investors rather than adopting a decentralization test, which Ripple contends is too subjective and inconsistent for legal application.

The proposed framework introduces exemptions for offerings up to $75 million, but Ripple seeks additional safeguards for secondary-market participants. The company specifically requested that exchanges and brokers be granted legal certainty when relying on 'Form TR' filings, which signal that an issuer has permanently ceased essential activities. According to Ripple, aligning these definitions across the Securities, Exchange, Investment Company, and Investment Advisers Acts is essential to prevent fragmented regulatory interpretations.

Highlighting the urgency of the request, Ripple pointed to a sharp decline in the U.S. share of global crypto developers—dropping from 38% in 2015 to 19% in 2024. By pushing for formal, predictable rules over shifting enforcement policies, the company aims to stabilize the environment for market participants and prevent the costly legal disputes that dominated its own recent history.