Ripple is calling on the U.S. Securities and Exchange Commission (SEC) to ditch its “case-by-case” approach to crypto enforcement and establish clear rules for the industry, warning that regulatory uncertainty is driving innovation offshore and costing companies millions in legal battles.
Ripple Chief Legal Officer Stuart Alderoty announced Wednesday that the company had submitted a comment letter supporting the SEC’s proposed Regulation Crypto Assets framework.
The filing argues that the agency can establish clearer requirements under existing securities laws without waiting for Congress to pass comprehensive crypto legislation.
“Years of ‘case by case, coin by coin’ enforcement has pushed innovation offshore,” Alderoty wrote on X. “We need holistic rules for digital assets.”
Ripple also argues that regulators should distinguish between a digital asset and the investment contract associated with its sale.
“The investment contract is the security, not the token,” Alderoty stated, adding that the focus should be on what an issuer promised investors and when those obligations end, rather than relying on a subjective decentralization test.
Notably, Ripple’s position reflects its prolonged legal dispute with the SEC, which began in December 2020 when the regulator accused the company of conducting an unregistered securities offering through XRP sales.
In July 2023, a federal court ruled that Ripple’s programmatic XRP sales to retail buyers on exchanges did not constitute investment contracts under the circumstances examined. However, the court found that certain institutional sales violated securities registration requirements.
The case continued through subsequent proceedings before Ripple and the SEC reached a settlement in 2025, resolving the long-running dispute.
Ripple has since used the litigation to illustrate the financial consequences of regulatory uncertainty. In its latest submission, the company said its legal expenses exceeded $150 million.
“No company should have to do that to learn what the law requires,” Alderoty wrote.
CEO Brad Garlinghouse has similarly argued that the XRP case demonstrates why the industry needs predictable regulations.
Following the Senate’s September setback on the CLARITY Act, he said Ripple had obtained legal certainty for XRP through the court process, even as the broader industry continues to seek clearer rules.
At an October 15 appearance on “The Starting Block” podcast, Garlinghouse also argued that regulatory progress could continue through agency action despite the legislative impasse.
“You can’t put the genie back in the bottle,” he said, referring to the momentum behind crypto regulation and adoption.
That said, Ripple’s filing comes as Congress struggles to advance legislation defining the SEC’s and the Commodity Futures Trading Commission’s (CFTC) regulatory responsibilities.
The CLARITY Act failed a Senate procedural vote on September 15, receiving 49 votes in favor and 50 against. The motion needed 60 votes to advance to floor debate.
Disagreements over ethics provisions involving President Donald Trump and his family’s cryptocurrency interests contributed to the impasse. Although the bill has not been permanently abandoned, its immediate legislative prospects have weakened.
The SEC, meanwhile, is pursuing its own regulatory framework. Proposed in August, Regulation Crypto Assets would create tailored exemptions for certain crypto-related investment contracts and a conditional safe harbor for assets that meet specified requirements.
SEC Chair Paul Atkins has presented the proposal as part of the agency’s effort to provide clearer pathways for crypto businesses while maintaining investor protections.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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