Ripple has submitted a direct and strongly worded response to U.S. SEC Commissioner Hester Peirce’s February 21 call for public input on crypto taxonomy rules.
The letter, addressed to the SEC’s Crypto Task Force, criticizes the agency’s past enforcement tactics and urges a return to clear, lawful regulation of digital assets.
According to Ripple’s Chief Legal Officer Stuart Alderoty, who shared the update on X, the company’s submission builds on the Dylan lyric Peirce quoted in her earlier statement.
Alderoty referenced the following line, “There’s too much confusion, I can’t get no relief,” accusing the prior SEC administration of thriving in regulatory uncertainty to justify its enforcement actions.
Ripple called on the SEC to stay within its statutory authority and focus on providing the industry with consistent, well-defined rules. The company stressed that digital asset regulation must come from Congress, not through aggressive agency interpretations.
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Market Fallout and Push for Clear Regulatory Framework
Ripple highlighted the significant market damage caused by the SEC’s actions. It cited the 2020 lawsuit against Ripple as a turning point that led to a 70 percent plunge in XRP’s price, wiping out $15 billion in market value.
Following the lawsuit, several U.S. exchanges delisted XRP, cutting off investor access and shaking market confidence.
XRP loss corresponded with regulatory impacts on major exchanges that targeted tokens, including Solana, Cardano, and Polygon. Ripple’s recent exchange enforcement actions emphasized that the moves had led to market-wide instability and doubt.
Ripple maintained that the SEC should base digital asset security classifications on the traditional Howey Test examination as part of its stance. XRP and multiple other tokens are incompatible with the proposed security classification defined in this test, according to Ripple.
Ripple repudiated the SEC’s statements about staking and yield-revenue services being securities because no central authority or issuing body exists to fulfill promises.
The company stood behind Commissioner Peirce’s Safe Harbor proposal while requesting regulatory clarity. The company views this proposal and existing regulatory testing grounds such as those operating in the UK, Singapore, and EU as ways to support secure innovation within a controlled framework.
Ripple confirmed it will continue to engage with the SEC and plans to submit further comments on crypto custody rules. The company concluded by calling for clarity, consistency, and a legislative path forward to support long-term growth in the U.S. digital asset space.
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