Crypto company Ripple has sent a letter to the US Securities and Exchange Commission (SEC) demanding clarity on the treatment of payment stablecoins and tokenized securities. This follows a meeting the company held with the Commission Cryptocurrency Task Force a few months ago.
Ripple asks the SEC to clarify the issue of stablecoins and tokenized securities
IN letter addressed to the SEC Cryptocurrency Task Force, Ripple requested clarification on stablecoins and tokenized deposits and provided suggestions on the Commission’s next course of action. First, the crypto company cited the need for transparency in its treatment stablecoins as collateral and suggested that the Commission amend Rule 15c3-1 to clarify how stablecoins can be properly used on balance sheets.
Additionally, Ripple requested clarity on custody requirements for customer stablecoins and suggested that the SEC amend Rule 15c3-3 to define the category of “eligible payment stablecoins.” The company also asked the Crypto Task Force to clarify that non-securities crypto assets beyond Bitcoin and Ethereum can be treated in the same way. Ripple referred to The latest SEC guidancewhich classified other major cryptocurrencies as commodities alongside BTC and ETH.
To accomplish this, Ripple suggested that the SEC revise Question 4 in the FAQs on Crypto Asset Business to include any securities other than securities that meet the definition of readily marketable. The company further asked the Commission to provide an analysis illustrating how the 2% haircut on stablecoins remains punitive. They suggested that stablecoins should have a 0% haircut provided there is a mint relationship between them broker-dealer and issuer.
Finally, Ripple asked the SEC Crypto Task Force to clarify which ownership registry, whether off-chain or on-chain, has priority in determining ownership and enforceable rights. The company insisted that the task force designate the on-chain registry as a single authoritative legal registry, thereby eliminating the dual-register ambiguity that arises in digital twin structures.
Ripple mentioned in the letter that the response was a follow-up to a meeting it held on March 20 with the SEC Crypto Task Force. The company further revealed that it has discussed the treatment of payment stablecoins and tokenized securities in line with net capital and consumer protection regulations, as well as potential next steps towards broader guidance.
Ripple CEO says the anti-crypto army has been defeated
In Post XRipple CEO Brad Garlinghouse said the anti-crypto army has been defeated by courts, voters and US President Donald Trump. He noted that the cryptocurrency hunt never made “political, legal or policy sense.” He added that cracking down on financial innovation only helped protect those who wanted to maintain the aged, often broken system.
Garlinghouse was reacting to President Trump’s post in which he criticized former SEC Chairman Gary Gensler and the anti-crypto army for nearly destroying the US crypto industry. The president also promised that his administration would codify it CLARITY Actsomething that “cryptocurrency haters” cannot undo.
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