Ripple told U.S. regulators that its dispute with the Securities and Exchange Commission (SEC) generated more than $150 million in legal costs, pairing the figure with a call for clearer obligations under a proposed crypto rule.
In an Oct. 20 comment on the SEC’s Regulation Crypto Assets proposal, Ripple argued that regulators should examine a deal involving a crypto asset separately from the asset itself. The company said the Howey test should apply to that contract, which could qualify as a security without making the linked asset one.
Ripple’s view focuses the legal inquiry on the contractual arrangement and the duties firms have under securities law. The company said clearer standards would help businesses determine when those duties apply.
The SEC proposed Regulation Crypto Assets on Aug. 18 and set Oct. 20 as the comment deadline. The agency has not adopted the proposal, and Ripple’s submission reports no separate SEC action concerning XRP. EconoTimes earlier covered Ripple’s argument for separating contracts from crypto assets.
