Ripple filed a comment letter with the SEC voicing support for the proposed crypto asset regulation and urging finalization of the rule. The proposal’s core principle is that the investment contract, not the token itself, is the security, a position Ripple considers faithful to the Howey test. Ripple cited Section 28 of the Securities Act and Section 36 of the Exchange Act as allowing the SEC to exempt classes of securities without Congressional action. Ripple’s legal battle with the SEC, which began in December 2020, caused XRP to fall roughly 70% and erased about $15 billion in market value as nearly every US-facing exchange delisted or blocked access. A July 2023 court ruling that XRP is not itself a security added approximately $21 billion to its market cap and restored US trading on Coinbase and Kraken the same day.
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