Altcoins News
By James Thorp
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In a move that could significantly reshape U.S. crypto regulation, Ripple Labs has proposed a new “network maturity” framework aimed at clarifying when digital tokens should no…
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For years, the question of whether—and when—crypto tokens transition from being part of a securities offering to a freely tradable digital commodity has haunted investors,…
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In response, the company is recommending a more objective set of standards—what it calls a “network maturity” test.
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Ripple’s proposed test is based on three key elements:
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Market Capitalization: The token must have a minimum circulating market value of $1 billion.
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Operational Longevity: The network must have been running for at least 10 years.
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Decentralized Governance: No single party should retain unilateral control over the protocol. The network must be open and permissionless.
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These criteria aim to identify tokens that are actively used, broadly distributed, and not reliant on a central entity—characteristics that align more closely with commodities…
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Ripple contends that tokens meeting these standards already function in transparent and liquid markets, where investors have access to sufficient public data.
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In its letter to the SEC’s Crypto Task Force, Ripple’s legal team emphasized that current law does not provide a “bright-line” test for when a digital asset separates from its…
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Ripple’s letter proposes a legal test that assumes a token has separated from its investment contract unless two conditions are met: (1) the original issuer has not fulfilled a…
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This approach is designed to limit the SEC’s reach to only those cases where investor protections are genuinely needed, rather than applying blanket rules to all digital assets…
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Ripple is not just pushing for a change in interpretation—it’s also advocating for new legislation.
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This safe harbor would provide early-stage projects with a regulatory cushion during the critical phase of network development, as long as they operate transparently and without…
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This proposal comes on the heels of an ongoing courtroom battle between Ripple and the SEC. In a landmark ruling last August, Judge Analisa Torres determined that Ripple’s XRP…
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