Ripple Backs SEC Crypto Framework, Separating Tokens From Contracts

Ripple supports the SEC’s proposed framework and argues that an investment contract involving a token—not the token itself—is the security. Ripple filed a comment letter in response to the SEC’s proposal. The SEC’s proposal stays faithful to the Howey test for digital assets. The SEC has not adopted the proposal. Ripple’s position is that an investment contract involving a token is the security, while the crypto asset itself should be treated separately. The filing sets out Ripple’s argument that a token should be distinguished from an investment contract involving it. Ripple’s filing refers to its legal history with the SEC.