Ripple backs the SEC’s crypto rulebook; Blockchain Association wants a $10 million startup glow-up

Ripple filed a comment letter supporting the SEC’s proposed Regulation Crypto Assets and urging the agency to finalize the crypto rules. The framework centers on the Howey test, treating the investment contract rather than the crypto asset itself as the security, and builds on a prior joint SEC-CFTC harmonization initiative.

Ripple CLO Stuart Alderoty said, “We support the proposal, and the SEC has clear authority to adopt it.” He said previous “case by case, coin by coin” enforcement had pushed crypto innovation offshore, arguing that the industry needs holistic rules for digital assets. He described the Regulation Crypto Assets framework as a major move.

Cardano was also among the projects supporting the SEC proposal, while Chainlink partnered with Hedera, Stellar, Aptos and Avalanche in urging the SEC to codify its digital commodity framework.

The Blockchain Association separately urged the SEC to raise the startup exemption limit from $5 million to $10 million.

Alderoty said the proposal remains faithful to the Howey Test and clarified that the investment contract, not the token, is the security. He said Ripple has spent more than $150 million seeking clarity that XRP is not a security. “What matters is what an issuer actually promised and when those promises end, not a subjective decentralization test,” he added.