$XRP Ripple Urges SEC to Separate Crypto Assets From Securities Transactions.
Ripple submitted a letter to the U.S. Securities and Exchange Commission (SEC) Crypto Task Force on Jan. 9, urging a rights-based framework for digital asset regulation. The blockchain payments company framed its position around legal obligations rather than market activity, speculation, or technological design.
The letter was signed by Ripple Chief Legal Officer Stuart Alderoty, General Counsel Sameer Dhond, and Deputy General Counsel Deborah McCrimmon. In the letter, Ripple argues that securities oversight should apply only for the duration of enforceable promises tied to a transaction. The company writes:
“The Commission’s jurisdiction should track the lifespan of the obligation; regulating the ‘promise’ while it exists, but liberating the ‘asset’ once that promise is fulfilled or otherwise ends.”
“The dispositive factor is the holder’s legal rights, not their economic hopes. Without that bright line, the definition of a security, and the SEC’s jurisdictional limits, become amorphous and unbounded,” Ripple added.
The submission explains that collapsing the distinction between a transaction and the underlying asset risks expanding securities jurisdiction indefinitely and criticizes approaches that rely on decentralization, trading behavior, or ongoing development as legal substitutes.
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