Ripple urges SEC to cease enforcement-based crypto regulation

23rd March 2025 – (New York) Ripple Labs has called on the U.S. Securities and Exchange Commission (SEC) to abandon its enforcement-centric approach to cryptocurrency regulation, asserting that a majority of digital assets fall outside the agency’s jurisdiction. This statement follows the SEC’s decision to drop its longstanding lawsuit against the XRP developer, a move celebrated by Ripple’s leadership.

In a letter to Commissioner Hester Peirce and the SEC’s newly established Crypto Task Force, Ripple condemned the SEC for creating confusion with its regulatory guidance, describing it as lengthy, convoluted, and lacking clarity. The firm urged the SEC to pivot towards offering clear, principle-based directives rather than relying on past enforcement-heavy tactics.

Ripple acknowledged recent SEC statements that clarified certain digital assets, like memecoins and specific mining activities, do not fall under securities laws, and advocated for these clarifications to serve as a framework for future guidance. The company contended that token sales lacking contractual obligations, staking rewards from permissionless protocols, and activities within decentralised networks should not be governed by the SEC.

Additionally, Ripple reiterated its support for Commissioner Peirce’s Safe Harbor proposal, which would provide a grace period for crypto projects before they must comply with securities regulations. The submission of this letter coincided with the first public roundtable of the Crypto Task Force and followed a significant week for Ripple.

CEO Brad Garlinghouse announced that the SEC has opted to withdraw its appeal, declaring it a momentous victory for Ripple and the broader cryptocurrency sector. His sentiments were echoed by Ripple’s legal chief, Stuart Alderoty, who emphasized that this decision sets a new precedent for the domestic crypto industry.