Ripple‘s Legal Chief Calls for SEC Clarity: Will XRP Finally Get Its Day in the Sun? 🌞

In a world where the winds of change blow fiercely, Ripple’s Chief Legal Officer, Stuart Alderoty, has taken a bold stand, demanding that the SEC provide clear rules on the treatment of crypto tokens. In a letter to the SEC’s Crypto Task Force, Alderoty proclaimed that most crypto tokens traded in the secondary market should not be shackled with the label of securities. This audacious move is seen as Ripple’s desperate attempt to launch XRP ETFs this year, for without legal clarity, the dream may be delayed, allowing other assets to bask in the limelight while XRP languishes in the shadows. The market is primed and ready to embrace XRP, and ETFs could propel it to heights akin to those reached by Bitcoin. 🚀

XRP Ruling Supports the Case

In a twist of fate, referencing Judge Torres’s ruling in the SEC v. Ripple case, the court declared that XRP sales on exchanges are not securities. Alderoty also pointed to a legal paper by Lewis Cohen, which argues that a token only qualifies as a security if there exists a clear relationship between the buyer and seller. This, of course, is a rarity when tokens are traded on exchanges, where anonymity reigns supreme.

New Rules Should Come From Congress

According to Alderoty, the SEC should not be the lone wolf in crafting new rules. He believes that Congress should don the mantle of authority to create laws for the crypto market. He argued that guidance based on existing laws would illuminate the murky waters of confusion for all. While he acknowledged the gaping holes in crypto regulation, Alderoty firmly stated that the SEC cannot play the role of a lone ranger. Instead, he called upon Congress to establish a legal framework tailored for the digital asset space. Regulatory clarity, he insists, must emerge from the hallowed halls of lawmakers, not from regulators overstepping their bounds.

• Also Read:
• XRP News: Why Did Ripple Submit An Additional Letter To Crypto Task Force?
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Possible Scenario for Security Status

Meanwhile, Ripple has proposed a ‘network maturity’ test to determine if a crypto token should still be shackled with the label of security. This test examines factors such as the project’s growth, its duration, and the distribution of control. Ripple contends that a token should only be deemed a security if two conditions are met simultaneously: if the original promises from the issuer remain unfulfilled, and if the current holder possesses legal rights to those promises. If these conditions are not met, the token should be treated as a separate entity from the original investment contract. This initiative is viewed as part of Ripple’s grand strategy to pave the way for a potential future ETF.

The Push for Fairer Crypto Rules Grows

This clarion call from Ripple echoes similar demands from the Blockchain Association and others who yearn for the SEC to cease applying the archaic rules of traditional finance to the vibrant world of crypto. With titans like BlackRock also engaging with the SEC’s Crypto Task Force, the momentum for better rules is only gaining strength. 💪

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2025-05-28 09:54