SEC's New Classification Proposal Could Reshape Crypto Regulations Amid Ripple Concerns

SEC's New Classification Proposal Could Reshape Crypto Regulations Amid Ripple Concerns

Legal discussions are intensifying as Ripple's concerns about classifying cryptocurrencies under federal securities laws gain traction, potentially reshaping digital asset regulations.

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A response to the US Securities and Exchange Commission’s (SEC) Crypto Task Force has been posted by attorney Teresa Goody Guillen, addressing concerns about the application of federal securities laws to cryptocurrencies. Guillen argues that merely holding a token with the expectation of its price increase should not automatically invoke securities regulation, aligning with Ripple’s previous assertions on the matter.

In her submission, published on Monday, Guillen emphasized the need for a broader evaluation of digital assets, rather than relying solely on the concept of a "passive economic interest." Her comments, however, are not intended to represent official SEC policy and do not propose a binding regulatory framework.

Additionally, Guillen has released a discussion draft for the “Digital Markets Restructure Act of 2026,” which has not yet received approval from SEC or Commodity Futures Trading Commission leadership. This draft suggests categorizing certain cryptocurrencies as “Digital Value Instruments,” based on specific criteria, including free transferability and limited contractual rights.

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