Ripple has released a blistering attack on the Securities and Exchange Commission, accusing the regulator of grossly overstepping its legal boundaries in the crypto sphere. The company isn’t pulling punches. They’ve flat-out said the SEC lacks authority over most digital assets and has twisted the Howey test beyond recognition to grab power where it doesn’t belong.
It’s not just about playing nice in the regulatory sandbox. Ripple wants Congress to step up and create actual frameworks instead of letting the SEC make it up as they go along. Remember that whole “separation of powers” thing from civics class? Yeah, Ripple thinks the SEC needs a refresher course.
The company’s message to the SEC is crystal clear: give straightforward guidance, stick to your lane, and maybe focus on actual fraud instead of reinterpreting laws from the 1930s. Revolutionary concept, right?
Ripple has particular beef with former SEC chair Gary Gensler‘s approach. Too much reach, not enough Congressional approval. The SEC apparently thinks it can just declare what’s an “investment” versus “speculation” – because clearly, they know better than everyone else.
The timing isn’t coincidental. The SEC recently dropped its appeal against Ripple, ending their legal slugfest. XRP prices jumped. Champagne corks popped. Regulatory certainty increased. The whole industry watched closely because, surprise, precedents matter.
Going forward, Ripple wants traditional legal terms applied sensibly to digital assets. No more of this “everything is a security” nonsense. They’re backing Commissioner Peirce’s sandbox ideas – but only after Congress does its job. Specifically, Ripple emphasized that staking mechanisms on decentralized networks shouldn’t qualify as securities offerings since rewards come from algorithmic rules rather than third-party efforts.
The case has become a landmark for crypto in America. There’s hope the SEC might actually change course under new leadership. Industry insiders expect clearer regulations by late 2025, and maybe even an XRP ETF someday.
Until then? The crypto world waits while Ripple continues telling the SEC exactly where to stick its overreaching regulations.
