Crypto firm Ripple has sent a letter to the U.S. Securities and Exchange Commission (SEC) demanding clarity on the treatment of payment stablecoins and tokenized securities. This follows a meeting that the firm held with the Commission’s Crypto Task Force a couple of months ago.
Ripple Requests SEC To Provide Clarity On Stablecoins and Tokenized Securities
In a letter addressed to the SEC’s Crypto Task Force, Ripple requested clarity on stablecoins and tokenized deposits and offered suggestions on how the Commission could proceed. Firstly, the crypto firm cited the need for clarity on the treatment of stablecoins as collateral and suggested that the Commission amend Rule 15c3-1 to clarify how stablecoins can be properly applied on balance sheets.
Furthermore, Ripple demanded clarity on the requirements for custodying clients’ stablecoins and suggested that the SEC amend Rule 15c3-3 to define the category of “Qualified Payment Stablecoins.” The firm also asked the Crypto Task Force to clarify that crypto asset non-securities, aside from Bitcoin and Ethereum, can receive equivalent treatment. Ripple alluded to the SEC’s recent guidance, which classified other major cryptos as commodities alongside BTC and ETH.
To achieve this, Ripple suggested that the SEC revise Question 4 in the FAQ relating to crypto asset activities to account for any non-securities that meet the readily marketable definition. The firm further asked the Commission to provide an analysis that illustrates how a 2% haircut for stablecoins remains punitive. They suggested that stablecoins should have 0% haircut, provided there is a mint-burn relationship between the broker-dealer and issuer.
Lastly, Ripple asked the SEC Crypto Task Force to clarify which registry of ownership, whether off-chain or on-chain, takes precedence to determine ownership and legally enforceable rights. The firm urged the Task Force to designate the on-chain registry as the single authoritative legal register, thereby eliminating the dual-registry ambiguity that arises in digital twin structures.
Ripple mentioned in the letter that the response was a follow-up to their March 20 meeting with the SEC Crypto Task Force. The firm further revealed that they had discussed the treatment of payment stablecoins and tokenized securities under the net capital and consumer protection rules, as well as potential next steps toward broader guidance.
Ripple CEO Says Anti-Crypto Army Has Been Defeated
In an X post, Ripple CEO Brad Garlinghouse said that the anti-crypto army was defeated by the courts, the voters, and U.S. President Donald Trump. He noted how the crypto witch hunt never made “policy, legal, or political sense.” He added that combating financial innovation only helped protect those who wanted to keep the old, often broken, system in place.
Garlinghouse was reacting to a post by President Trump in which he called out former SEC Chair Gary Gensler and the anti-crypto army for nearly destroying the American crypto industry. The president also vowed that his administration will codify the CLARITY Act, which cannot be undone by the “crypto haters.”
