Ripple submitted a new letter to the SEC: detailing when the Token loses its securities attributes.

CoinNetwork · 2025-05-28T16:49:37+00:00

Ripple filed a supplemental letter with the SEC to explore when digital assets lose their security properties. The letter focused on responding to questions from SEC Task Force Leader Hester Peirce's presentation "The New Paradigm." Citing the analysis of legal experts, Ripple believes that most crypto assets transferred in the secondary market are not securities. They also referred to Judge Analisa Torres' ruling in the Ripple v. SEC case, emphasizing that even if the sale of XRP to institutional clients constitutes securities, the sale in the secondary market is not an investment contract.

CoinNetwork

2025-05-28 16:49:37

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Ripple has filed a supplemental letter with the U.S. Securities and Exchange Commission (SEC) to shed light on a key issue: when the token should lose its security attributes. Stuart Alderoty, Ripple’s chief legal officer, highlighted the letter in a post on the X platform. According to him, Ripple sent the letter to the SEC’s Crypto Task Force, led by Commissioner Hester Peirce. The focus of this letter is Peirce’s recent speech “The New Paradigm” (, in which she posed the question: “When can digital assets be separated from investment contracts?” In response to this issue, Ripple cited existing securities law analysis from prominent legal experts such as Lewis Cohen. In this analysis, Cohen argues that current American investment contract law does not classify the routine transfer of most alternative encryption assets in the secondary market as securities. Ripple emphasized that Judge Analisa Torres reinforced this point in her landmark ruling on the Ripple vs. SEC case in July 2023. Specifically, while the judge ruled that Ripple’s sale of XRP to institutional clients constituted a security, she found that the company’s sale of XRP on the secondary market did not constitute an investment contract.

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