JackTheRippler, a well-known voice in the XRP community, recently highlighted a significant new submission from Ripple to the U.S. Securities and Exchange Commission (SEC). The filing, dated May 27, 2025, addresses a fundamental regulatory question: when does a crypto asset, originally distributed under an investment contract, cease to be considered a security? This correspondence follows a meeting held on May 20 between Ripple and the SEC’s Crypto Task Force. It aligns with Commissioner Hester Peirce’s recent “New Paradigm” speech . Ripple’s letter aims to provide a legal and policy framework to help clarify the distinction between securities and non-securities in the context of digital assets, particularly those like XRP. BREAKING: @Ripple has submitted an additional letter to the SEC, addressing a crucial question about when a token should lose its security label! BULLISH FOR #XRP pic.twitter.com/b5qD9MHivw — JackTheRippler © (@RippleXrpie) May 28, 2025 Reinforcing XRP’s Status With Existing Case Law Ripple’s letter draws from established legal analysis, particularly the 2022 paper, The Ineluctable Modality of Securities Law by Lewis Cohen and others. The company argues that current law does not support classifying most fungible crypto assets as securities when traded on secondary markets. Ripple cites a section of the paper that emphasizes how these assets do not involve the kind of legal relationship characteristic of investment contracts. The company also references Judge Analisa Torres’s ruling from July 2023 , where it was determined that Ripple’s programmatic token sales and other secondary market transactions did not qualify as securities. Judge Torres ruled that while Ripple’s past institutional sales involved investment contracts, these did not apply to subsequent market transactions, and the token itself is not a security. This distinction plays a central role in Ripple’s argument that XRP should not be broadly classified as a security. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Proposing a Maturity-Based Framework Ripple proposes using “maturity” as a clearer regulatory standard than “decentralization.” Under this approach, a digital asset would no longer be regulated as a security once its network becomes sufficiently independent. Ripple suggests indicators like market capitalization, operational history, and lack of unilateral control as signs of maturity, arguing these factors offer a more practical measure of independence than metrics such as token distribution or ties to the issuer. Avoiding Misleading Disclosure Requirements Ripple’s letter also warns that requiring ongoing disclosures for non-securities could mislead the public into thinking affiliated parties still control the asset. Many detractors wrongly assume that XRP is centralized , and requirements like these could amplify those false beliefs. The filing comes amid Ripple’s legal battle with the SEC, when the proposed settlement agreement was denied on procedural grounds . Ripple’s latest submission reinforces its stance that XRP should not be treated as a security, and settling the case with the SEC would help cement the asset’s status. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Ripple Asks SEC Crucial Question About XRP appeared first on Times Tabloid .
