Ripple told the SEC it should complete its draft rules for crypto assets, arguing that unclear regulation has already cost the industry. The SEC's proposed framework would also open two fundraising tiers for crypto projects, though strict requirements may limit who can use them.
Ripple submitted its SEC comment letter on October 20, 2026, supporting clearer rules for crypto assets. The company behind XRP says the SEC should now finish its proposed regulations.
Ripple's case for clearer rules
According to Ripple, federal securities law already provides a basis for regulating crypto assets, but it does not specifically state what qualifies an asset as a security. Under the proposal, investment contracts, rather than crypto assets themselves, would qualify as securities.
Ripple also argued that inconsistent enforcement had pushed innovation offshore. It cited more than $150 million spent clarifying legal questions.
Two fundraising tiers for crypto projects
The SEC's framework targets projects that need more than the $5 million startup exemption allows. Tier 1 allows raises of up to $20 million per year, while Tier 2 extends that amount to $75 million.
Issuers in either tier must first get SEC approval and issue disclosures on token economics, governance, and development risk. Tier 2 issuers must also submit audited financials, which brings higher compliance costs. Because U.S.-based eligibility is strict, non-U.S. entities may be excluded, and some smaller projects may struggle to meet all the requirements.
Offshore funding questions remain
Clearer rules do not necessarily mean companies will stop operating in other countries. In Q2 2026, venture capital funding for crypto startups totaled approximately $5.6 billion across 384 deals, according to Galaxy Research data cited by AMBCrypto. Domestically based entities received 73.5% of that capital.
Source: AMBCrypto
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