Seven Crypto Companies Back SEC Rules for Digital Assets

Ripple sent a letter to the U.S. Securities and Exchange Commission (SEC) with comments on the proposed Crypto Asset Regulation. The company expressed support for the finalization of the rules. The document is based on the Howey Test, which considers an investment contract as a security, not the crypto asset itself. The proposal builds on a previous joint initiative by the SEC and CFTC to harmonize regulation.

Ripple's Chief Legal Officer Stuart Alderoty stated that the company supports the proposal and that the SEC has clear authority to adopt it. He noted that previous enforcement measures, applied case by case and coin by coin, have driven crypto innovation abroad. According to him, the industry needs comprehensive rules for digital assets, and the crypto asset regulatory framework is an important step in that direction. Alderoty clarified that an investment contract is a security, not a token. Ripple has spent over $150 million to clarify whether XRP is a security. He emphasized that what matters is what the issuer actually promised and when those promises end, not a subjective assessment of decentralization. Clear rules based on existing law will attract capital, ensure investor protection, and lead to innovation in the U.S.

Other companies joined Ripple. Chainlink, in partnership with Cardano, Hedera, Stellar, Aptos, and Avalanche, called on the SEC to codify a regulatory system for digital commodities. The Blockchain Association also proposed raising the tax exemption limit for startups from $5 million to $10 million. Chainlink's Head of Policy Taylor Barr stated that builders need long-term certainty, and enshrining progress in legislation would be a significant step to ensure America remains a hub for digital asset innovation.

The official comment period for the SEC amendment ended on October 20, but the commission will continue to accept public feedback after this date. Journalist Eleanor Terrett reported this. The SEC confirmed that it encourages participants to submit comments by the deadline but will continue to accept feedback after the period ends. The new rules will create exceptions for cryptocurrency issuers raising capital in the U.S. Meanwhile, developments surrounding the CLARITY Act remain uncertain ahead of the midterm elections.