Ripple has formally asked the SEC’s newly formed Crypto Task Force to adopt a “promise-based” legal framework that would allow certain tokens — including XRP — to exit securities law once an issuer’s original fundraising obligations have ended. In a policy letter submitted on Jan. 9, Ripple urged regulators to tie securities treatment to “the lifespan of the obligation,” rather than permanently labeling a token as a security simply because it was once sold in a capital-raising transaction. The company argues that regulation should attach to the enforceable promises made in a primary sale, not to the token that later trades on secondary markets. Key points from Ripple’s submission - Privity as the test: Ripple says securities law should apply where there is privity — a direct legal relationship between issuer and purchaser in a primary transaction that creates enforceable rights and obligations. Once that relationship ends, the company argues, securities jurisdiction should end as well. - “Zombie promise” problem: Treating every issuer sale as a permanent capital raise lets decades-old statements haunt secondary-market buyers who never saw them. Ripple warns this creates persistent legal exposure for tokens long after the original fundraising promises have expired. - Commodity-style rules for mature markets: For trading on exchanges where buyers rely on liquidity, price discovery, and token utility rather than issuer promises, Ripple recommends a commodity-style regulatory approach rather than securities enforcement. Why this matters now The filing arrives as U.S. crypto policy is in flux. Congress has passed the GENIUS Act on stablecoins and is preparing broader market-structure legislation expected in early 2026. At the same time, the SEC — now led by Chair Paul Atkins — has launched Project Crypto and is shifting from an enforcement-first posture toward formal rulemaking through its Crypto Task Force. Ripple’s pitch clearly reflects its long-running courtroom fight with the SEC over whether XRP is a security. The SEC’s original suit alleged that Ripple’s XRP sales constituted an ongoing investment contract. Ripple’s policy proposal would put that courtroom defense into federal rulemaking: under the proposed framework, XRP would be subject to securities rules only when Ripple itself makes enforceable commitments, not when the token is traded between third parties on exchanges. Potential implications If adopted, Ripple’s “promise-based” approach would narrow the scope of securities regulation for many digital assets and could move routine token trading under a commodity-style regulatory regime. That could reduce secondary-market legal exposure for issuers and reshape how exchanges, investors, and regulators approach token classification going forward. Note: This article is informational and not investment advice. Trading cryptocurrencies carries high risk; readers should conduct their own research before making financial decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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