Ripple and seven industry organizations voiced support for the U.S. Securities and Exchange Commission's (SEC) proposed crypto framework as the October 20 comment deadline closed, though several asked the regulator to revise key provisions before final adoption.

Ripple urged the SEC to adopt Regulation Crypto Assets, a package introduced on August 18 that would create exemptions from securities registration for certain token offerings. Six blockchain organizations filed a joint request to embed commodity classifications directly in the rule, while the Blockchain Association proposed doubling two of the plan's fundraising limits. None of the proposed exemptions has taken effect, and the rules remain subject to final agency approval.

Ripple Backs SEC Crypto Rules, Seeks Clearer Contract Standards

Ripple submitted a comment letter backing the SEC's authority to finalize Regulation Crypto Assets. Chief Legal Officer Stuart Alderoty said the agency should apply the Howey test to determine whether a transaction involves an investment contract, arguing that the contract itself creates the securities obligation rather than automatically making the underlying token a security. The Howey test is the SEC's long-standing framework for identifying investment contracts, turning on whether money is invested in a common enterprise with a reasonable expectation of profits derived from the efforts of others.

The executive criticized the SEC's earlier reliance on individual enforcement cases to resolve questions about crypto assets. Alderoty said Ripple spent more than $150 million seeking legal clarity and argued that companies need rules explaining which promises to investors trigger securities requirements. He also asked regulators to consider when an issuer has completed those commitments.

Chainlink and Five Blockchain Groups Seek Commodity Rules

Chainlink Labs joined the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation in a separate request to the SEC. The six organizations want the regulator to place its definition of a digital commodity directly in the final regulation rather than leave that language in explanatory material.

The SEC's March 2026 interpretation identified XRP, ADA, LINK, HBAR, XLM, APT and AVAX among examples of digital commodities, describing assets whose value derives from a functioning crypto network and from market supply and demand.

Chainlink policy head Taylor Barr said the coalition wanted lasting rules for developers. The group also asked the SEC to make clear that digital commodities do not automatically represent ownership claims, cash-flow rights or other interests commonly attached to securities.

Blockchain Association Requests Higher Fundraising Caps

The Blockchain Association also supported the proposal but sought changes to its fundraising provisions. The industry group urged the SEC to raise the startup exemption from $5 million to $10 million and increase the larger offering limit from $75 million to $150 million. Those limits determine how much capital startups could raise while staying within the registration exemptions at the center of the proposal.

The association asked regulators to exclude airdrops and network rewards when calculating how much capital a startup has raised under the exemption. Its October 20 letter also called for rules that account for decentralized teams, repeat founders and public blockchain records when assessing disclosure obligations.

In a separate request concerning existing tokens, the association asked the SEC to allow third parties to submit documentation when original issuers cannot do so. The group also proposed clearer tests to determine when a development team has finished the work that originally formed the basis of an investment contract.

SEC Reviews Industry Feedback on Crypto Exemptions

Under the draft introduced on August 18, qualifying issu could offer up to $5 million over four years, or $75 million within each 12-month period, without traditional securities registration. Both paths would require investor disclosures and continued compliance with federal antifraud rules. The larger exemption would carry financial statement and ongoing reporting requirements.

The proposed safe harbor would apply only after an issuer fulfilled or permanently ended its promised essential managerial activities and met the rule's other conditions.

Other commenters sought additional changes. The Hyperliquid Policy Center asked the SEC to clarify its treatment of free token distributions, while the Alternative Investment Management Association requested more detail on investor rights and potential risks for fund managers.

The official comment period ended on October 20, but the SEC can still receive late submissions. Whether the SEC incorporates any of the requested revisions into a final rule will be the next milestone for a package that remains subject to final agency approval.

This report is for general information and does not constitute legal or financial advice. Crypto investments carry regulatory and market risks; readers should conduct independent research.