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- Ripple reaffirms leadership in crypto regulation after SEC drops its appeal in XRP case.
- The company urges the SEC to reject past misapplications of the Howey Test and simplify compliance.
- Ripple’s next legal step remains undecided as it considers whether to pursue its cross-appeal.
Ripple is dedicated to achieving clear crypto regulations after the U.S. Securities and Exchange Commission discontinued its lawsuit appeal against the company. A previous court decision had shown substantial support for Ripple regarding XRP classification, but the SEC attempted to challenge this ruling.
The recent regulatory shift represents a major advancement within the overall regulatory framework. The SEC has also backed off multiple other enforcement actions, including cases against Coinbase and Kraken.
Through CNBC, Ripple’s Chief Legal Officer Stuart Alderoty declared that the company remains committed to driving clear and consistent regulatory standards. The company wants to respect regulatory frameworks while preventing rule makers from using nonsensical discretion.
The leadership of Ripple has maintained silence regarding its future stance on proceeding with its cross-appeal despite the SEC withdrawing its appellate possibilities. CEO Brad Garlinghouse said in his interview with Bloomberg that the firm actively considers its alternative options because Ripple might challenge portions of the initial court decision.
Ripple Urges SEC to Move Away from “Distorted” Legal Interpretations
Ripple presented its arguments to SEC Commissioner Hester Peirce about how the Howey Test was misused during previous regulatory approaches. Ripple demanded that the present SEC administration formally reject misguided interpretations that cause excessive difficulties in the industry.
Ripple’s declaration requested that public officials exercise their legal functions and prevent measures obstructing industry progress. The firm emphasized the requirement for clear regulatory guidelines because such measures foster investor and business trust toward operations.
The SEC’s newly established crypto task force conducted its first roundtable session this week. New engagement protocols between regulators and industry stakeholders progressed through this initiative while regulatory framework updates continue to expand in demand.
At the discussions, Former SEC official John Reed Stark recognized the position taken by Commissioner Caroline Crenshaw. SEC Commissioner Caroline Crenshaw stands out as the only official expressing that investor protection needs to be the SEC’s primary concern.
Many crypto industry professionals have requested structured guidelines during this time because Ripple has continued its ongoing dialogue with the SEC. Many industry experts identify unclear regulation as the central obstruction preventing space industry expansion.
Ripple’s recent court victory created a legal breakthrough for its ongoing case and increased support for regulatory discussions across the industry. Ripple will use its expected leadership position to advocate for specific and legally enforceable guidelines regarding crypto assets after the SEC chooses to stop particular enforcement actions.
Also Read: SEC Roundtable Puts Bitcoin’s Decentralization Status in Spotlight as Regulatory Debate Intensifies
