Ripple submits a new letter to the SEC: detailing when tokens lose their securities characteristics.

[Ripple submits new letter to SEC: detailing when tokens lose their security characteristics] Ripple has submitted a supplementary letter to the U.S. Securities and Exchange Commission ( SEC ), aiming to clarify a key issue: when tokens should lose their security characteristics. Ripple's Chief Legal Officer Stuart Alderoty emphasized this letter in a post on the X platform. According to him, Ripple sent this letter to the SEC's crypto task force led by Commissioner Hester Peirce. The focus of this letter is Peirce's recent speech "The New Paradigm" (, in which she posed the question: "When can digital assets be separated from investment contracts?" In response to this question, Ripple cited existing securities law analysis from renowned legal experts, such as Lewis Cohen. In that analysis, Cohen argues that current U.S. investment contract law does not classify the routine transfer of most fungible encryption assets in the secondary market as securities. Ripple emphasized that Judge Analisa Torres reinforced this point in her landmark ruling on the Ripple vs. SEC case in July 2023. Specifically, while the judge ruled that Ripple's sale of XRP to institutional clients constitutes a security, she found that the company's sale of XRP in the secondary market does not constitute an investment contract.