Ripple Labs, the Cardano Foundation and other blockchain organizations are pressing the Securities and Exchange Commission to adopt binding crypto rules instead of relying on interpretations. The Cardano Foundation said the SEC designated ADA a digital commodity rather than a security earlier this year. The classification appears in the explanatory preamble to proposed Regulation Crypto Assets, but not in the provisions that would have legal effect. The organizations want the SEC to incorporate the classification into those provisions.
The Cardano Foundation signed a joint letter with the Stellar Development Foundation, Hedera, Aptos Labs, Ava Labs and Chainlink Labs. The letter asks the SEC to define digital commodities as assets deriving value from blockchain operations and supply and demand, rather than expected profits from another party's management. The letter distinguishes native network tokens from financial claims. The letter says tokens such as ADA support transaction fees, network security and governance without giving holders rights to corporate income or profits.
The signatories also ask the SEC to retain classifications identified in the agency's March 17, 2026 interpretation. The signatories argue that explicit rules would give developers greater certainty when choosing where to build. The signatories say those rules would also support capital formation and protect investors.
Ripple Labs submitted a separate letter supporting the proposed SEC framework, as reported on Tuesday. Ripple argues that XRP should not automatically be classified as a security because earlier sales involved investment contracts. Ripple cites the XRP court ruling to argue that the investment contract constitutes the security, while the token itself does not necessarily qualify. Ripple also urges the SEC to reject decentralization tests. Ripple argues that corporate support or continuing blockchain development should not automatically trigger securities classification.
Ripple seeks wider safe harbor protections under laws governing investment companies and investment advisers. Ripple also requests state-law preemption for trading in secondary markets. A National Cryptocurrency Association study cited by Ripple estimated that clearer regulations could have enabled 382 to 1,518 additional US token offerings between 2022 and October 2026. The study estimated that clearer regulations could have enabled an additional $325 million to $1.12 billion in US capital raising over that period.
Both letters argue that classifications based only on guidance remain vulnerable to regulatory revision or withdrawal. Both letters say the absence of binding rules leaves exchanges, institutions and investors without certainty.
Ripple, Cardano, Chainlink Push SEC for Binding Token Rules
BenzingaShare
Summary
Ripple Labs, the Cardano Foundation, and crypto groups are pressing the SEC to establish binding token rules, not just rely on interpretations. Clear regulations would help developers, boost liquidity and crypto markets, and protect investors. Ripple also stressed XRP shouldn’t be a security, citing a court ruling. The groups say CFT laws show the need for clarity.
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