Ripple Advocates for SEC to Finalize Crypto Assets Regulation Framework

Ripple Labs has formally requested that the U.S. Securities and Exchange Commission (SEC) finalize its proposed Regulation Crypto Assets framework. In a letter dated October 20, the company argued that digital assets should not indefinitely fall under securities laws based on their initial investment arrangements.

Ripple expressed support for the SEC's proposal while emphasizing the need for clearer guidelines on how investment contracts conclude, the classification of crypto assets, and the operations of exchanges and intermediaries under the new framework. The company contends that the status of a cryptocurrency as a security should depend on the issuer's commitments to investors and whether those obligations are still in effect.

The company highlighted that the SEC's framework should acknowledge that investment contracts can terminate once an issuer has fulfilled or permanently ceased the key managerial activities promised to investors. Furthermore, Ripple cautioned against using decentralization as a criterion for determining a token's status under securities laws, arguing that aspects such as network governance and token ownership do not necessarily indicate the ongoing existence of an investment contract.

Under the proposed Regulation Crypto Assets, crypto projects could benefit from exemptions allowing offerings of up to $5 million over four years or $75 million within a 12-month period, contingent on disclosure requirements. The proposal also includes a mechanism for issuers to certify that their tokens are no longer subject to an investment contract via a Form TR filing. Ripple supports this mechanism but requests that failing to submit Form TR should not automatically imply that a token remains a security.

Additionally, Ripple raised concerns regarding provisions that could complicate secondary market trading, suggesting that registered dealers should not face additional state securities requirements when providing ordinary market liquidity. The company urged for clarification that typical activities involving crypto assets, such as holding and staking, should not trigger securities registration requirements.

This filing follows Ripple's extensive legal battles with the SEC over XRP sales, with Ripple's Chief Legal Officer, Stuart Alderoty, noting that the company has invested over $150 million in pursuit of regulatory clarity. The SEC's proposed Regulation Crypto Assets was introduced in August, with the public comment period concluding on October 20. The agency is now tasked with reviewing industry feedback before deciding on the adoption or revision of the proposed rules.

New Developments in Crypto Regulation

On September 21, 2026, Plume Network presented a regulatory framework to the SEC’s Crypto Task Force, proposing a division of the vault ecosystem into four roles: vault protocol developer, vault curator, vault administrator, and vault token issuer. Only the vault administrator and token issuer roles would be subject to regulatory oversight, while developers and curators would remain outside this perimeter.

As of October 21, 2026, Plume Vaults reported approximately $226 million in total value locked (TVL), with recent fees totaling about $1.02 million over the past 30 days. The company has been actively engaging with US regulators, having secured a Bermuda Monetary Authority Class M Digital Asset Business Licence in May 2026, which allows for regulated vault operations outside the US.

Plume is also seeking clarifications on custody rules for onchain vaults held by registered funds and the establishment of secondary markets for tokenized fund shares, enabling investors to trade vault positions more flexibly.