Ripple submits supplemental letter to SEC to discuss separation of digital assets and investment contracts

Mars Finance reports that Ripple's Chief Legal Officer Stuart Alderot y announced that Ripple has submitted a supplementary letter to the SEC's cryptocurrency task force, focusing on when digital assets can be separated from investment contracts. This move responds to the questions raised by SEC Commissioner Peirce in her "New Paradigm" speech. In the letter, Ripple cited legal analyses from 2022 and the 2023 SEC v. Ripple Labs case ruling, emphasizing that XRP itself is not a security and arguing that most crypto assets should not be considered securities in secondary market trading. Ripple also suggested that the SEC introduce a "safe harbor" mechanism to provide clearer compliance guidelines and proposed criteria based on network maturity to help clarify which digital assets have moved beyond investment contracts. Ripple stated that it hopes to promote transparency and clarity in crypto market rules through ongoing dialogue with the SEC, providing a clearer direction for industry development.