Key dishes to remember
- Ripple argues that the SEC should focus on existing laws and postpone new cryptographic regulations to the Congress.
- Ripple criticizes the application by the previous dry administration of the Howey test as distorted and complex.
Share this article
Ripple called the dry to stick to existing statutes and allow the Congress to establish new legal frameworks for Crypto. According to the cabinet, the regulator must focus on prevention of fraud, the use of laws already in place and leave the definitions of the market structure to the legislative body.
“Congress actively plans the structure of the market and legislation on stablescoin. This is the role of political decision -makers to establish new legal standards governing cryptographic assets, “Ripple said in a letter from March 21 to the dry.
Ripple said that the authority of the dry was limited to titles as defined by existing laws and should not be enlarged unilaterally.
“As the Crypto working group seems to recognize, the SEC should go back to the first principles and, within the limits of existing laws, strive to provide simple market advice that has been absent to date,” said Ripple in his letter.
“The agencies have only these powers which are granted to them by the congress, and the legislation allowing is generally not an open book to which the agency can add pages and modify the intrigue,” added the company.
The company welcomed the recent Declaration of the SEC on documents even as a model approach, noting its clear articulation based on the existing law that the documents even fall under federal laws on securities and the jurisdiction of the dry.
The SEC commissioner, Hester Peirce, also said in a February interview with Bloomberg Crypto that many coins are probably not outside the regulatory scope of the dry.
Ripple criticized the application by the previous dry administration of the Howey test, saying that it was “armed” and “distorted” to extend the competence of the dry.
The company has stressed several problems with the past interpretations of the SEC, in particular how “speculation” has been incorrectly substituted for “investment” and how decentralization has become a concept for assets to “magically transform the status of security in non-security and again”.
Ripple underlined the need for the dry to adhere to the initial intention of the Howey test and existing securities laws – an enforceable agreement in which a party invests and another promises for profit. Without that, a sale of token is not security.
For yield generation agreements, Ripple has argued that the yields generated algorithmic by protocols outside the control of a part should not be considered as titles, because they differ fundamentally from the benefits made thanks to third -party management efforts.
The company also expressed its support for the regulatory proposals of Commissioner Peirce, but suggested that it should only be implemented after the congress has established clear legislation of the market structure and regulatory supervision delegations.
Ripple’s letter is part of the current dialogue between the cryptography industry and the SEC, in particular the working group of the dry crypto.
The regulators collect the perspectives of industry players on how to regulate digital assets. By far, representatives of many entities, such as Coinbase, Nasdaq, A16z and Robinhood, submitted their written contribution to the dry.
Ripple’s letter comes after the CEO Brad Garlinghouse said on Wednesday that the SEC withdrawn its application for the company, ending the legal battle which caused around $ 15 billion in losses for XRP holders.
Share this article
