Ripple
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2, one of the largest cryptocurrencies by market capitalization, has been engaged in legal battles for years. With Trump’s presidency, circumstances improved for Ripple. Recently, the company’s legal director, Stuart Alderoty, shared a comprehensive response to SEC Commissioner Hester Peirce’s request for comments.
Ripple and Cryptocurrency Regulation
Today, Ripple submitted its response to Commissioner Hester Peirce. Peirce is known for her pro-crypto stance, which led to her appointment in the SEC. In response to the SEC’s “There should be a way out of this” request for information dated February 21, 2025, Ripple shared a detailed document.
The introduction of the document critiques the ongoing process. It discusses the lack of necessary guidance and the prolonged, convoluted legal proceedings under Gensler’s leadership that have exhausted companies. According to Ripple, the SEC can only regulate assets considered “securities” and the transactions associated with them. The SEC has long delayed the crypto sector by distorting the concept of “investment contracts.”
“The SEC’s authority is limited to that granted by Congress, and the relevant legislation is not a flexible book where the agency can add new pages and alter the narrative.” (Citation: West Virginia v. EPA, 2022)
Ripple criticizes the SEC’s broad interpretation of the “investment contract” concept. This critique essentially addresses the core issue, indicating from where to start seeking a solution.