Ripple asks SEC to provide clear regulatory guidance for exchanges
Ripple urges SEC to shift from enforcement to clear crypto regulations.
In a pointed response to a recent U.S. Securities and Exchange Commission (SEC) statement, Ripple has called on the regulator to shift its focus from enforcement to establishing clear, law-based guidance for digital asset companies.
Ripple argues that the SEC’s past actions have generated widespread confusion across the crypto industry, stifling innovation and misapplying legal standards, reports Cryptopolitan.
A Call for Law-First Clarity
The SEC’s February 21 statement, titled “There must be some way out of here,” prompted a strong rebuttal from Ripple, which drew on Bob Dylan lyrics to highlight the uncertainty facing the crypto sector. “There’s too much confusion, I can’t get no relief,” the company quoted in its letter, underscoring its view that the SEC’s prior enforcement actions lacked statutory grounding.
Ripple’s chief legal officer, Stuart Alderoty, went further, alleging that the commission “thrived on confusion” to mask regulatory overreach. Ripple contends that the agency’s enforcement strategy undermined the goal of the SEC’s own Crypto Task Force, which is intended to clarify whether digital assets qualify as securities.
Criticism of SEC Legal Interpretations
Ripple maintains that many digital assets and their related transactions do not fall under the SEC’s jurisdiction, as the agency can only regulate securities under the Securities Act. The company specifically challenged the SEC’s use of the Howey Test, claiming it was improperly applied to classify digital assets as securities—even in the absence of contracts or profit-sharing.
Ripple also urged the SEC to differentiate staking and yield on public networks from securities and to provide clearer policies. It reaffirmed support for regulatory sandboxes and the Token Safe Harbor Proposal, citing international success in markets like the U.K., Switzerland, and Singapore.
While Ripple agreed with the SEC’s decision to treat meme coins as non-securities, it emphasized that future rules must be rooted in existing legal frameworks—not in vague or arbitrary standards that could destabilize crypto markets.
Recently we wrote, that XRP price action has been marked by a sharp rally followed by a notable decline due to recent fundamental developments.
