Ripple backed the SEC’s proposal to modernize the regulation of cryptocurrencies in the United States, according to a letter sent on October 20. The company believes the SEC already has the legal authority to adopt these rules and criticized its case-by-case, coin-by-coin enforcement approach. The proposed framework includes two exemptions from securities registration requirements: raising up to $5 million over four years for qualifying projects and up to $75 million per year for other offerings. It also establishes a conditional safe harbor for digital assets that are no longer investment contracts. Ripple supports the distinction between a cryptocurrency itself and the investment contract through which it is sold, while challenging decentralization as a determining factor in whether an asset is a security.
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