Ripple Labs has formally endorsed the US Securities and Exchange Commission’s proposed Regulation Crypto Assets, calling for its swift adoption as a binding rule. The company submitted its comment letter on October 20, 2026, coinciding with the final day for public input on the agency’s releases 33-11434 and 34-106150 (File No. S7-2026-27).
Ripple’s position on crypto regulation
Chief Legal Officer Stuart Alderoty, General Counsel Sameer Dhond, and Deputy General Counsel Deborah McCrimmon signed Ripple’s letter. The document states that Ripple “fully supports the Commission’s efforts to provide a regulatory framework for crypto assets, and urges the Commission to adopt the Proposal in a final rule.”
Ripple emphasized that a regulatory framework rooted in existing US securities law could offer much-needed clarity to the crypto industry, reducing the need for piecemeal enforcement actions and fostering domestic innovation.
Ripple, a blockchain technology company known for its digital payment protocol and the digital asset XRP, pointed out that the SEC’s proposal builds on a joint interpretation of existing securities laws by both the SEC and the Commodity Futures Trading Commission (CFTC). This interpretation relies on the Howey investment-contract test as a legal basis for crypto asset oversight.
The firm argued that the presence of an investment contract does not automatically render the underlying token a security. Instead, Ripple contended, the legal status should hinge on the issuer’s promises and representations throughout the contract’s life—rather than applying a permanent securities designation to the token or using a decentralization test as the sole criterion.
Ripple also incorporated its previous correspondence with the SEC’s Crypto Task Force in 2025 and 2026, providing additional context for its views.
Industry impact and legal context
Stuart Alderoty has previously commented that the company spent over $150 million on legal efforts to resolve its longstanding dispute with the SEC over XRP’s regulatory status.
According to Ripple, the proposed regulation could replace the uncertainty of case-by-case enforcement with clearer, predictable rules. The company maintains that this approach would encourage capital formation in the US and reduce the likelihood of crypto innovators seeking opportunities overseas.
While expressing general support, Ripple advocated for targeted improvements. One specific request involved clarifying that Form TR filings should not be treated as an admission of previous securities status or legal violations.
The official comment window for the SEC’s proposal closed on October 20. However, the Commission confirmed that it will continue to accept public feedback as it considers whether to finalize the framework. Ripple’s endorsement arrives as a significant statement from a leading US blockchain firm as policymakers deliberate over the future of crypto regulation.
Mini dictionary: Howey test – A legal test established by the US Supreme Court to determine whether certain transactions qualify as investment contracts and therefore fall under the definition of a security, based on whether there is an investment of money in a common enterprise with an expectation of profits from the efforts of others.
| Aspect | Case-by-case enforcement | Proposed SEC Framework |
|---|---|---|
| Clarity | Unpredictable | Clearer regulatory path |
| Impact on innovation | Encourages offshore moves | Supports domestic capital formation |
| Legal foundation | Ad hoc litigation | Grounded in existing law |
Comment period and next steps
With the SEC’s comment period concluded, industry attention now shifts to how the agency will address feedback from market participants. Ripple’s recommendations and support may influence the final form of US crypto regulations as authorities evaluate the balance between investor protection and industry growth.
The company’s public stance underscores the high stakes for both market participants and regulators as new federal rules for digital assets move closer to completion.
