Ripple Sends Letter to SEC, Ripple CLO Confirmed. Here’s Why

In a significant step forward in the ongoing crypto regulation debate, Ripple has submitted a new letter to the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force. This move addresses a crucial question raised by SEC Commissioner Hester Peirce in her well-known “New Paradigm” speech: When does a digital asset separate from the investment contract under which it was first sold? The update was confirmed by Stuart Alderoty, Ripple’s Chief Legal Officer, in a post on X. This latest communication highlights Ripple’s determination to engage directly with regulators and help shape the future rules of the crypto market. It’s not just about Ripple or XRP — it’s about setting clarity for the entire digital asset ecosystem. Today, @Ripple submitted an additional letter to the SEC’s Crypto Task Force addressing a key question from Commissioner Peirce’s “New Paradigm” speech: When does a digital asset separate from an investment contract? We appreciate the continued engagement with the Task Force.… — Stuart Alderoty (@s_alderoty) May 27, 2025 Ripple’s Persistent Engagement with U.S. Regulators This letter is part of Ripple’s long-standing pattern of working with lawmakers, regulators, and the courts. Since the SEC filed its high-profile lawsuit against Ripple in December 2020 — accusing the company of selling XRP as unregistered security — Ripple has remained one of the most vocal challengers of the SEC’s approach to crypto oversight. Stuart Alderoty has been at the forefront of Ripple’s legal battles, becoming a central figure in the company’s defense strategy. His public confirmation of today’s letter underscores Ripple’s commitment to pushing for answers to the big questions facing the industry — not just fighting lawsuits, but actively participating in regulatory dialogue. The Heart of the Issue: When Does a Token Stand Alone? At the center of Ripple’s letter lies a legal gray area that has stirred debate for years: Under U.S. law, when can a crypto token — once tied to an investment contract — stand on its own and no longer be regulated as a security? The SEC typically relies on the “Howey Test” to determine if a transaction qualifies as an investment contract. Many tokens, according to the agency, meet that definition when they’re sold to investors who expect profits based on the efforts of the issuing company. But Ripple argues, alongside voices like Commissioner Peirce, that over time the token itself can evolve beyond that relationship. Once broadly distributed or decentralized, a token might lose the very characteristics that made it part of an investment contract in the first place. This distinction is critical — not just for Ripple, but for the entire U.S. crypto market. Ripple’s Larger Strategy: Influencing the Regulatory Narrative By directly responding to Commissioner Peirce’s challenge, Ripple is doing more than defending itself. It’s helping shape the larger conversation around how crypto should be regulated in the U.S. This comes at a time when the SEC’s Crypto Task Force is facing mounting pressure to clarify its policies — not just from the industry, but also from lawmakers and even some within the SEC itself. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Ripple’s letter signals that the company isn’t waiting for courtroom decisions alone. It’s using every available channel — including direct regulatory engagement — to push for clearer rules that can guide the entire industry. While the full contents of the letter haven’t been publicly released, Alderoty’s announcement makes clear that Ripple sees this as a meaningful contribution to the ongoing debate. Why It Matters for XRP and the Broader Market For XRP holders and crypto market watchers, Ripple’s legal and regulatory actions have real stakes. In 2023, Ripple scored a partial legal victory when Judge Analisa Torres ruled that XRP sales on public exchanges do not qualify as securities transactions. But that decision didn’t settle every question — far from it. By continuing to press the SEC on foundational issues, Ripple is working to create a regulatory environment where crypto projects can operate with clearer guidelines and less fear of sudden enforcement actions. That’s not just good news for Ripple — it’s good news for the health and stability of the entire U.S. digital asset space. What’s Next? As the SEC’s Crypto Task Force reviews Ripple’s submission, the crypto world will be watching closely. With Stuart Alderoty leading Ripple’s legal strategy, the company continues to balance court battles with behind-the-scenes policy work. And the broader question — when a digital asset can break free from the legal weight of its original investment contract — remains one of the defining regulatory challenges of the coming years. Ripple’s latest move marks another important chapter in its effort to shape not only its own future but the future of crypto regulation across the United States. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Ripple Sends Letter to SEC, Ripple CLO Confirmed. Here’s Why appeared first on Times Tabloid .

Source: TimesTabloid