Ripple has recently reached out to the SEC, highlighting the need for clearer regulations in the crypto space. This comes after Hester Peirce, head of the SEC’s Crypto Task Force, sought public input on how to establish a clearer crypto taxonomy. Her request, titled “There must be some way out of here,” signals an effort to resolve the regulatory confusion caused by previous SEC leadership.
Ripple Urges To Clear Up The Confusion
Ripple responded by criticizing the SEC’s previous leadership under Gary Gensler. The company pointed out that the SEC’s past crypto guidelines were confusing, overly lengthy, and lacked solid legal backing.
Ripple highlighted that the previous SEC leadership seemed to create confusion in the market to cover up its failure to follow the law. To address this, it proposed three solutions to help the SEC clear up the confusion left behind.
Back To The Basics
Firstly, to resolve this confusion, Ripple suggested that the SEC should go back to basics and only regulate what is clearly defined as securities under federal laws. The company argued that many digital assets, especially those that don’t generate profits or yield, shouldn’t be classified as securities.
Stick To The Existing Laws
Ripple also urged the SEC to stick to existing laws instead of creating new ones that could add more confusion. The company highlighted that only Congress has the authority to make new laws, and the SEC should focus on enforcing existing regulations rather than making new ones.
Finally, Ripple is calling on the SEC to provide much-needed clarity for the crypto market. The company applauded the SEC’s decision to clarify that meme coins aren’t securities, helping to clear up some confusion. Ripple is pushing for the SEC to take a clear and direct approach, hoping it will resolve the ongoing confusion surrounding crypto regulations.
Besides, the Ripple vs SEC lawsuit is nearing its conclusion, as the SEC has decided to drop its appeal against Ripple. The remaining hurdle is Ripple’s cross-appeal, but many legal experts believe the company will drop it once a favorable agreement with the SEC is reached.
