Quick answer: Ripple filed a comment letter on Oct. 20, 2026, the last day of the SEC’s comment period, fully backing the proposed Regulation Crypto Assets. The rule would let token issuers raise up to $75 million a year without full registration and add a safe harbor for tokens whose promised work is done, per the SEC and Ripple.
The fight over whether a token is a security may finally get a rulebook. On Oct. 20, 2026, Ripple filed a letter urging the SEC to adopt Regulation Crypto Assets, a proposed rule that would give crypto projects a tailored path to raise money and, later, step outside securities law.
The timing matters. Oct. 20 was the deadline for public comments, so the SEC now moves from listening to deciding.
What did Ripple say about Regulation Crypto Assets?
Ripple’s chief legal officer, Stuart Alderoty, announced the filing in an X thread at 22:32 UTC. “We support the proposal, and the SEC has clear authority to adopt it,” he wrote. The thread drew about 69,600 views within three hours.
He argued that years of “case by case, coin by coin” enforcement pushed innovation offshore. He also said Ripple “spent more than $150 million to get clarity,” a reference to its long court fight with the SEC.
The full letter rests on three ideas. First, the investment contract is the security, not the token. Second, promises can end, so a token is not tied to a contract forever. Third, status turns on what the issuer actually promised, not on a vague “decentralization” test.
What is the SEC’s Regulation Crypto Assets proposal?
The SEC issued the proposal on Aug. 18, 2026 and published it in the Federal Register on Aug. 21, according to the SEC rule page. Chairman Paul Atkins called it “the most historic step yet to modernize federal securities regulations for crypto assets,” as quoted by the Congressional Research Service.
It has four main parts:
- Startup exemption: up to $5 million over four years, filed on a short Form NOR, with no SEC review and no limit on retail buyers.
- Fundraising exemption: Tier 1 allows up to $20 million and Tier 2 up to $75 million per 12 months, filed on a new Form 1-CRYPTO. Tier 2 needs audited financial statements.
- Token safe harbor (Rule 400): once an issuer finishes or permanently stops the work it promised, it files a Form TR, and the token is treated as no longer tied to an investment contract.
- State preemption: sales under the exemptions would skip separate state registration.
Non-accredited buyers in the fundraising exemption would be capped at 10% of their annual income or net worth. Issuers would also stay subject to anti-fraud rules, per the SEC press release.
What changes does Ripple want before a final rule?
Ripple supports the rule but asked for targeted fixes. The biggest one is for exchanges. It wants anyone who trades a token “in good faith in reliance on a filed Form TR” to be protected, and any later SEC challenge to apply only going forward.
Ripple also asked for a “no presumption” clause. Under that clause, a project that never files a Form TR should not be presumed to be a security. It wants the safe harbor extended to the Investment Company Act and Advisers Act, too. Finally, it wants clarity that holding, lending, staking or using a token as collateral does not, by itself, trigger registration.
What does Regulation Crypto Assets mean for crypto markets?
For new projects, the rule could bring token sales back onshore. Today many teams launch abroad or sell only to accredited investors. A clear $75 million lane with tailored disclosure could change that.
For exchanges, the open question is listings. The CRS notes that trading a token before its promised work ends could still pull intermediaries under securities law. That is exactly why Ripple’s good-faith reliance request matters.
For XRP holders, the letter is mostly about precedent rather than price. XRP traded near $1.34, up about 3.1% in 24 hours, on CoinGecko at 01:56 UTC on Oct. 21. For recent context, see our reports on Standard Chartered’s RLUSD custody and the CFTC’s perpetual futures fight with CME.
The SEC does not act alone, either. Congress is still working on the CLARITY Act, which passed the House in July 2025 and would go further on secondary trading, per the CRS.
Regulation Crypto Assets FAQ
What is Regulation Crypto Assets?
Regulation Crypto Assets is an SEC proposal issued on Aug. 18, 2026. It creates two registration exemptions for token offerings, worth up to $5 million over four years or up to $75 million per 12 months, plus a safe harbor that frees a token from an investment contract once the issuer’s promised work is finished.
When did the comment period end?
Public comments on File No. S7-2026-27 were due by Oct. 20, 2026, per the SEC. Ripple filed its supporting letter on that date. The SEC must now review the comments before it can vote on a final rule, and it has not announced a date.
Does the rule say XRP or other tokens are not securities?
No. The proposal does not name specific tokens. It says the investment contract, not the token, is the security, and it lets issuers file a Form TR once their promised work is done. The SEC can still challenge that certification.
Is Regulation Crypto Assets law yet?
No. As of Oct. 21, 2026, it is a proposed rule. The SEC would need to adopt a final version, and Congress is separately debating the CLARITY Act market-structure bill.
Not financial advice. Crypto assets are volatile, so do your own research (DYOR) before making any decision.
Sources
- Ripple comment letter on Regulation Crypto Assets (Oct. 20, 2026)
- Stuart Alderoty on X (Oct. 20, 2026)
- SEC: Regulation Crypto Assets, File No. S7-2026-27
- SEC press release: SEC Proposes New Regulation Crypto Assets
- Congressional Research Service: SEC Proposes “Regulation Crypto Assets”
- CoinGecko XRP price
