Ripple, Chainlink, Cardano and Others Back SEC Regulation Crypto Assets Proposal

Ripple Labs and a coalition of major blockchain organizations have urged the U.S. Securities and Exchange Commission to adopt final rules for crypto assets, backing the agency's proposed Regulation Crypto Assets. Ripple filed a detailed comment letter on October 20, the final day of the public comment period, calling on the commission to adopt the proposal as a final rule.

The push matters because the proposal would replace years of case-by-case enforcement with formal rules, a shift Ripple and other industry participants argue would help keep innovation in the United States. The SEC released the proposal on August 18, aiming to create a clearer framework for certain investment contracts involving digital assets.

Ripple's Letter Backs Regulation Crypto Assets

Ripple's approximately 20-page letter, addressed to SEC Secretary Vanessa A. Countryman, expressed full support for Regulation Crypto Assets and called on the commission to adopt it as a final rule, according to NameCoinNews. Chief Legal Officer Stuart Alderoty shared the letter publicly via X.

"We support the proposal, and the SEC has clear authority to adopt it," Alderoty said. He added that previous "case by case, coin by coin" enforcement has pushed crypto innovation offshore, and said the industry needs holistic rules for digital assets, calling the Regulation Crypto Assets framework a major move, according to CoinGape.

A central point in Ripple's filing is the distinction between a crypto asset itself and any investment contract under which it may have been offered. The company argued that an investment contract can be a security without making the associated token a security, and that the framework is consistent with the Supreme Court's Howey test.

Ripple also urged the SEC to determine when an investment contract ends by examining whether an issuer has completed or permanently ceased the essential managerial efforts promised to investors, rather than relying on a subjective decentralization test. "What matters is what an issuer actually promised and when those promises end, not a subjective decentralization test," Alderoty said.

What the SEC Proposal Contains

Regulation Crypto Assets would create tailored registration exemptions for crypto issuers raising capital in the United States. Under the proposal, eligible startups could raise up to $5 million over four years through one exemption, while a second would permit offerings of up to $75 million within a 12-month period, subject to additional disclosure and financial reporting requirements.

The proposal also includes a conditional safe harbor. Once an issuer meets specified conditions showing that important managerial efforts have ceased and no new material promises are made, the associated crypto asset could be treated as no longer part of an investment contract.

The framework rests on the Howey test, treating the investment contract rather than the crypto asset itself as the security. It builds on a March 2026 joint interpretive release by the SEC and the Commodity Futures Trading Commission that began clarifying how federal securities laws apply to crypto assets.

Ripple supports the safe harbor approach but wants a more reliable process for exchanges, brokers and other market participants. The company seeks protections allowing those intermediaries to rely on a properly filed Form TR, the proposed filing establishing that essential managerial activities have ended, along with consistent treatment across federal securities statutes and clarification of secondary-market transactions under Rule 500, according to The Cryptonomist.

Coalition Pushes Digital Commodity Codification

Alongside Ripple's submission, a group of blockchain organizations filed a joint comment letter. The coalition includes Chainlink Labs, the Cardano Foundation, Hedera, Ava Labs, the Stellar Development Foundation and Aptos Labs.

The group urged the SEC to codify classifications for digital commodities, arguing that clearer status would strengthen U.S. competitiveness and reduce legal ambiguity for networks already widely viewed as decentralized. Chainlink said it was proud to partner with Hedera, Aptos, Ava Labs and Stellar in urging the SEC to codify its digital commodity framework.

Codifying this progress would be a meaningful step toward keeping America the home of digital asset innovation, said Taylor Barr, Chainlink's head of policy. The coalition's advocacy accompanies Ripple's support for the proposed rules and its requests for changes, according to The Cryptonomist.

Other market participants, including groups associated with platforms such as Hyperliquid, also submitted comments seeking clarifications on specific aspects of token trading, airdrops and related activities, according to NameCoinNews.

Exemption Limits and Ripple's Legal History

Ripple is seeking to exempt certain crypto assets from full SEC securities registration. The Blockchain Association, for its part, urged raising the startup exemption limit from $5 million to $10 million.

Ripple's push for clearer rules follows its long legal battle with the SEC. Alderoty said the company spent more than $150 million seeking legal clarity over XRP, adding, "No company should have to do that to learn what the law requires," according to Coinpedia.

Alderoty said a clearer framework could attract investment, protect investors and help keep crypto innovation in the United States. He argued that clear rules grounded in existing law would bring capital, investor protection and innovation to the country.

Comment Period and What Comes Next

The formal comment period for Regulation Crypto Assets ended on October 20. However, the SEC will continue accepting public feedback after the deadline, according to journalist Eleanor Terrett.

"While we encourage commenters to submit their feedback by the deadline, the Commission will continue to accept public comments on rule proposals after the comment period closes," the SEC said, according to CoinGape. The regulator is expected to weigh the submissions as it considers changes before a final commission vote, according to Coinpedia.

The new crypto rules would create fundraising exemptions for crypto issuers raising capital in the United States, while developments around the CLARITY Act remain uncertain ahead of midterm elections, according to CoinGape.

Conclusion

Ripple and a coalition including Chainlink, Cardano, Hedera, Stellar, Aptos and Avalanche have formally backed the SEC's proposed Regulation Crypto Assets, with Ripple filing a roughly 20-page comment letter on October 20 urging adoption as a final rule. The proposal would create fundraising exemptions of up to $5 million over four years and $75 million within 12 months, alongside a safe harbor for determining when a token is no longer tied to an investment contract. Although the formal comment period has closed, the SEC said it will continue accepting public comments as it considers changes ahead of a final commission vote.

Frequently Asked Questions

What is the SEC's proposed Regulation Crypto Assets?

Regulation Crypto Assets is an SEC proposal released on August 18 that aims to create a clearer framework for certain investment contracts involving digital assets. It includes tailored registration exemptions, a conditional safe harbor, and builds on a March 2026 joint SEC-CFTC interpretive release.

Which companies support the SEC's Regulation Crypto Assets?

Ripple filed a comment letter on October 20 supporting the proposal, while a coalition including Chainlink Labs, the Cardano Foundation, Hedera, Ava Labs, the Stellar Development Foundation and Aptos Labs filed a joint letter urging the SEC to codify digital commodity classifications.

What fundraising exemptions would Regulation Crypto Assets create?

The proposal includes two exemptions: eligible startups could raise up to $5 million over four years through one route, while a second would allow offerings of up to $75 million within 12 months, subject to additional disclosure and financial reporting requirements.

How much did Ripple spend on its SEC legal battle over XRP?

Ripple Chief Legal Officer Stuart Alderoty said the company spent more than $150 million seeking legal clarity over XRP, adding that no company should have to spend that much to learn what the law requires.

Is the SEC still accepting comments on Regulation Crypto Assets after October 20?

Yes. Although the formal comment period ended on October 20, the SEC said it will continue accepting public comments on rule proposals after the deadline, according to journalist Eleanor Terrett.