The payments firm is supporting the regulator's draft crypto framework while asking for key amendments, following years of litigation.
Ripple has voiced support for a new SEC proposal aimed at regulating crypto markets, according to reports from crypto.news and U.Today. The endorsement arrives after a prolonged legal dispute between the company and the regulator, a fight reportedly valued at $150 million.
Ripple spent years contesting the SEC's claims that its XRP sales amounted to unregistered securities offerings. The case, filed in 2020, became one of the most closely watched legal battles in the digital asset industry. It shaped how courts and regulators approached the question of when a token qualifies as a security.
That litigation reportedly carried a cost of $150 million for Ripple, according to the cited reports. The figure underscores how expensive prolonged regulatory uncertainty can be for crypto firms, even those with substantial resources. It also helps explain why Ripple has shifted toward engaging directly with rulemaking efforts rather than relying solely on litigation outcomes.
According to the reports, Ripple's support for the SEC's proposal is not unconditional. The company is seeking specific changes before the rule is finalized. Neither report detailed the exact amendments Ripple wants, but the move signals an effort to shape the framework rather than simply oppose or accept it outright.
The SEC has been working on broader market structure guidance for digital assets, a process that has drawn input from exchanges, issuers, and advocacy groups. Crypto firms have long argued that unclear rules make compliance difficult and discourage innovation within the United States. Ripple's participation reflects a wider pattern of industry players attempting to influence policy directly during the comment and review process.
Ripple's position carries particular weight given its history with the agency. The company fought the SEC in court for years and became a reference point for other firms facing similar securities questions. Its decision to back a regulatory proposal, rather than challenge it, marks a notable shift in tone between the company and its former courtroom adversary.
The development also fits into a larger trend of crypto companies moving from confrontation toward structured engagement with regulators. As the SEC continues refining its approach to digital assets, input from firms with direct litigation experience could factor into how final rules are written. Ripple's dual approach, support paired with requested revisions, illustrates the balancing act many companies now face between compliance and advocacy.
Market Impact
News of Ripple's support for the SEC proposal may be read by market participants as a sign of improving relations between major crypto firms and federal regulators. That dynamic could influence sentiment around XRP and other assets tied to Ripple's business, though no direct financial outcome was specified in the available reporting.
For the broader industry, the development highlights how companies with prior enforcement history are now shaping policy conversations rather than remaining purely defensive. Any changes Ripple successfully negotiates into the rule could set precedents affecting how other token issuers and exchanges are regulated going forward.
Ripple's backing of the SEC's crypto proposal, paired with its push for amendments, reflects a notable turn from years of adversarial litigation toward direct policy engagement. The outcome of that engagement could shape how digital asset rules are written in the months ahead.
Frequently Asked Questions
What was the legal fight between Ripple and the SEC about?
The SEC alleged that Ripple's sales of XRP constituted unregistered securities offerings, a case that began in 2020 and spanned several years of litigation.
What is the $150 million figure reported in connection with the case?
According to the cited reports, Ripple's legal fight with the SEC carried a cost of $150 million, though the reporting did not break down what that figure fully covered.
What changes is Ripple seeking to the SEC's proposal?
The specific amendments Ripple is requesting were not detailed in the available reports, though the company has indicated it supports the rule only with revisions.
Why does Ripple's position on this rule matter to the broader crypto industry?
Ripple's history fighting the SEC in court gives its stance added significance, as other firms often look to its case when assessing regulatory risk around token classification.
Originally reported by AltcoinGordon, written by Amelia Brooks. Republished with permission.
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