Ripple has asked the US Securities and Exchange Commission to finalize its proposed regulatory framework for crypto assets and clarify when a token ceases to be considered a security. The company argues that an initial investment contract does not automatically make the underlying token a security because the classification should depend on whether the issuer still has outstanding obligations to investors. Ripple also supports the certification mechanism through Form TR, while requesting that failing to file the form not automatically result in the token remaining subject to securities laws. The SEC proposal includes exemptions for offerings of up to $5 million over four years or $75 million during a 12-month period, subject to disclosure requirements and other conditions. The company also seeks safeguards for secondary-market activities, including holding, lending, pledging, collateralizing and staking tokens, while the SEC reviews industry feedback on the proposal.
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