Ripple writes to SEC and proposes three solutions to resolve the confusion in cryptography regulations

Ripple, a leading blockchain payments company, wrote to the SEC that its stance on providing clarity on Crypto’s regulations.

Last month, Hester Peirce, head of the SEC’s Crypto Task Force, requested public information on establishing clearer cryptographic classification rules. Her request, titled “There must be some path from here,” suggests a desire to end the regulatory disruption caused by past SEC leadership.

Ripple responds

In that response, Ripple criticized past SEC leadership, especially those led by Gary Gensler. The company emphasized that the SEC’s previous cryptographic guidance was overly confused, long and unsupported by the law.

In particular, the SEC of the past reflected the prosperity of market participants in causing confusion to cover their failure to follow the law.

Ripple offers 3 solutions

Interestingly, Ripple made three proposals to help the US SEC resolve the confusion created by the previous administration.

Return to the first principle

To resolve this confusion, Ripple recommended that the SEC return to its original principles by regulating only what constitutes securities as defined by federal securities laws.

The company proposed that many digital assets, particularly those that do not generate or produce profits, should not be classified as securities.

It will remain within the legal limit

Additionally, Ripple urged the SEC to follow current laws instead of establishing new laws that could cause even more confusion.

The company noted that only the US Congress has the ultimate power to create laws. Therefore, the SEC should leave the US Congress with the creation of new rules.

It needs to be clear

Furthermore, Ripple emphasized that the SEC should bring relief by providing regulatory clarity to the Crypto market. In this view, the company praised SEC Corporation’s finance division for making it clear that the meme coins are not securities. This clearly suggests that meme-based cryptocurrencies are not subject to the US federal securities laws.

In particular, Ripple recommended that the SEC strive to make this concise approach. We believe this will end the turmoil of regulations in the crypto market.

Meanwhile, several crypto entities, including Ripple, were victims of this confusion. This led the company to endure a prolonged legal battle with the SEC. The good news is that the lawsuit is nearing the end, following the SEC’s decision to drop the appeal against Ripple.

One of the major remaining issues is Ripple’s own mutual appeal. Nevertheless, many legal experts expect the company to withdraw its lawsuit after reaching a favorable agreement with the SEC.