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Ripple Fires Back at SEC Overreach, Pushes Congress for Crypto Clarity
August 7, 2025
In a strongly worded letter to the House Financial Services Committee, Stuart Alderoty, Ripple’s Chief Legal Officer, has fired back at the Securities and Exchange Commission (SEC) over its alleged overreach in regulating the crypto space. The company has urged Congress to provide clarity on the matter.
Alderoty criticized the SEC’s inconsistent approach, saying it is “using a legal standard that was meant to be flexible as a sword” to go after assets like XRP and ETH. He emphasized that the Howey test should not be twisted beyond its original meaning.
Ripple has called on Congress to define clear boundaries between securities and non-securities in the crypto market, and for the SEC to write formal rules defining an “investment contract.” This move is seen as a bid to protect users and innovation.
The company is also pushing for exemptions for long-traded tokens like XRP and ETH from new regulations. This is intended to prevent sudden shifts in oversight and confusion on the markets.
Alderoty has warned against giving the SEC too much leeway in defining key terms like “related parties.” He believes any new restrictions on token sales or rules about insiders need to be based on law, not left to SEC interpretation.
Ripple’s move is seen as a significant statement in favor of establishing national crypto regulations.
Source: www.tronweekly.com
