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Coin Edition 2025-05-28 08:15:00

Ripple Submits Framework to SEC on When Digital Assets Separate from Investment Contracts

Ripple proposes a clear test for when tokens sever from original investment contracts. The framework requires material unfulfilled promises and enforceable holder rights. The alternative “maturity test” suggests a $1 billion market cap threshold for exclusion. Ripple has submitted a detailed framework to the SEC’s Crypto Task Force addressing when digital assets become separated from their original investment contracts. The May 27 letter, signed by Chief Legal Officer Stuart Alderoty and other executives, responds to Commissioner Peirce’s “New Paradigm” speech. The submission follows a May 20 meeting between Ripple and the SEC task force. This is where the company presented its analysis on cryptocurrency regulation. Ripple’s letter cites Judge Torres’s ruling in SEC v. Ripple Labs as validation that XRP itself is not a security. According to Ripple’s legal framework, a digital asset remains tied to an investment contract only when two conditions are met. One is when a material promise made by the issuer to original purchasers remains unfulfilled, and a second when the subsequent holders have enforceable rights against the issuer arising from that promise. … The post Ripple Submits Framework to SEC on When Digital Assets Separate from Investment Contracts appeared first on Coin Edition .

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