Ripple calls on the SEC to establish clearer regulations for cryptocurrencies, proposing 3 solutions.

Ripple has recently officially called on the U.S. Securities and Exchange Commission (SEC) to establish clearer regulations for the crypto market. This move comes after Hester Peirce, the head of the SEC's Cryptocurrency Enforcement Task Force, invited the public to provide input on how to more clearly classify cryptocurrency assets.

Her call, titled "There must be some way out of here" (Must be some way to escape this situation), reflects the SEC's effort to resolve the contradictions and inconsistencies in cryptocurrency policy under previous leadership.

Ripple asks SEC to eliminate ambiguity in regulations

In its official response, Ripple did not hesitate to criticize the SEC's approach under Chairman Gary Gensler. The company argued that the previous guidance on cryptocurrencies was not only convoluted and confusing but also lacked a solid legal foundation, leaving both investors and businesses in the industry bewildered.

Ripple argues that the SEC seems to have intentionally created ambiguity in regulations to cover up its failure to comply with the law. To address this situation, Ripple has proposed three solutions to help the SEC realign its policy framework and create a more transparent legal environment for the crypto market.

Solution 1: Go back to the basics

First of all, Ripple emphasizes that the SEC needs to return to basic legal principles, only overseeing and regulating digital assets that truly meet the definition of securities under federal law.

According to Ripple, many types of digital assets, especially those that do not generate profits or do not provide cash flow, should not be classified as securities. Equating all types of cryptocurrency with securities is not only a legal mistake but also stifles innovation in the industry.

Solution 2: Comply with current laws, do not arbitrarily set new rules

According to Ripple's perspective, the SEC should not impose new regulations arbitrarily, as this could create more confusion rather than provide clarity. The company emphasizes that only the U.S. Congress has the legislative authority to establish and enact new laws, while the SEC only has an enforcement role.

The SEC's unilateral interpretation of the law to expand its control not only creates confusion but also sets a dangerous precedent that could hinder the growth of the crypto industry. Instead, Ripple believes that the SEC should focus on consistently, fairly, and reasonably enforcing existing regulations.

Solution 3: Provide clear guidelines to ensure transparency for the market

Finally, Ripple requested the SEC to provide detailed, specific guidelines to help the crypto market develop within a clearer legal framework. The company appreciates that the SEC clarified that memecoins are not securities – a move that helps reduce confusion in the market.

However, Ripple argues that this is only a small step, and the SEC needs to continue to have a more transparent and straightforward approach to address the ongoing controversies related to cryptocurrency regulation. A clear legal framework not only protects investors but also promotes the sustainable development of the industry.

The Ripple – SEC lawsuit is nearing its conclusion

In addition to the policy debates, the prolonged lawsuit between Ripple and the SEC is also nearing its conclusion. Recently, the SEC decided to withdraw its appeal against Ripple, marking a significant step forward in this high-profile case.

However, there is still one final hurdle: Ripple is currently pursuing a cross-appeal to protect its interests. Nevertheless, many legal experts predict that the company may withdraw this appeal if it reaches a favorable settlement with the SEC.

This event could put an end to one of the largest legal battles in the crypto industry, while also setting the stage for significant changes in the SEC's approach to this field in the future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• The SEC may soon conclude its more than 4-year lawsuit against Ripple. *Garlinghouse CEO: U.S. SEC will drop appeal against Ripple

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