Ripple backs SEC crypto rules, seeks XRP safeguards

Ripple supports the SEC’s proposed crypto rules, but says changes are needed to clarify token disclosures, safe-harbor eligibility and secondary-market trading. The company argues that securities status should depend on the investment arrangement and promises tied to a token sale—not automatically on the token itself or every later transfer. It also wants qualifying issuers to retain safe-harbor eligibility if promised work is abandoned, and says failure to file a disclosure form alone should not imply that a token is linked to an investment contract. The SEC proposal, introduced on August 18, would let eligible issuers raise up to $5 million over four years or $75 million in 12 months under exemptions, while retaining disclosure and anti-fraud requirements. It includes a conditional safe harbor for some investment contracts. Ripple says it spent more than $150 million on legal costs during its XRP dispute, arguing that companies should not need years of litigation to understand their obligations. Ripple cited the market fallout from the case: it says XRP lost about 70% of its value within days of the SEC’s December 2020 lawsuit, wiping out roughly $15 billion in market value. After a July 2023 court ruling that XRP was not a security in itself, XRP’s market capitalization reportedly rose by about $21 billion, and US trading resumed on Coinbase and Kraken. A cited study estimated that clearer rules from 2022 to October 2026 could have enabled 382–1,518 additional US token offerings and $325 million–$1.117 billion in extra capital. The SEC is still considering the proposal, and Ripple’s requested changes are not guaranteed. For XRP traders, clearer rules could improve confidence over the long term, but the near-term price effect remains uncertain.