Ripple has taken a public stance on the future of crypto regulation in the United States. The company filed a comment letter with the Securities and Exchange Commission in response to the SEC’s proposed crypto asset regulation, and its chief legal officer confirmed the filing on X.
Crypto commentator Mason Versluis also drew his audience’s attention to the development, calling it a significant regulatory update for XRP holders.
Versluis made clear in his video that this is not the same SEC that pursued Ripple under former chairmen Gary Gensler and Jay Clayton. “Ripple is on the side of the SEC,” he said, “and hopefully the SEC is on the side of Ripple and XRP.”
New $XRP Regulation Update pic.twitter.com/8cWQBU2lzZ
— MASON VERSLUIS (@MasonVersluis) October 21, 2026
$150 Million for Clarity
Ripple’s comment letter opens with a reference to the company’s legal history. Ripple spent more than $150 million in litigation to establish what the law requires of a crypto asset issuer. The company’s chief legal officer stated that no company should have to go through that process to understand its legal obligations.
Versluis echoed that position, noting that years of case-by-case, coin-by-coin enforcement pushed innovation offshore and gave companies no reliable standard to operate within.
The Howey Test and What It Means for XRP
The core argument in Ripple’s letter concerns how the Howey test applies to digital assets. The SEC’s proposed regulation stays faithful to that test, and Ripple supports the approach. Under this framework, the investment contract is the security, not the token itself.
Versluis explained the significance of that distinction for XRP holders. “If there’s an investment contract with the token, then the investment contract is the security, not the token,” he said.
He tied this back to the outcome of Ripple’s lawsuit with the SEC, which established that XRP itself is not a security. The court found that Ripple’s institutional sales to companies constituted an investment contract, but the token did not.
Clear Rules Over Enforcement
Ripple’s letter notes that the SEC holds clear authority to adopt the proposed regulation and that doing so would bring capital, investor protection, and innovation to the United States.
The company’s chief legal officer stated that holistic rules for digital assets are necessary to replace the enforcement-first approach that defined the previous administration’s handling of crypto.
Versluis described the filing as a positive sign. Ripple is now on record supporting the regulatory direction of the current SEC, and the letter signals that the company sees the proposed framework as one it can operate within.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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