SEC Task Force Responds to Ripple's Concerns on Crypto Classification
By John Nada·Jan 27, 2026·3 min read
The SEC's Crypto Task Force addresses Ripple's concerns over the CLARITY Act, challenging the notion that speculation should trigger securities laws.
The SEC’s Crypto Task Force has addressed Ripple’s concerns regarding the implications of the CLARITY Act on cryptocurrency regulations. According to Cointelegraph, the response, written by digital asset regulation attorney Teresa Goody Guillen, argues that mere speculation should not automatically subject cryptocurrencies to federal securities laws. Guillen emphasized that holding a 'passive economic interest,' such as buying a token with the hope of price appreciation, should not trigger securities regulations by itself. She noted that assets should be evaluated using a broader set of factors on a sliding scale.
Guillen echoed Ripple’s assertion that frameworks suggesting a 'passive economic interest' alone could invoke securities laws mistakenly blend speculation with investment rights. Her remarks do not set forth a binding regulatory framework and do not reflect official SEC policy. This response was in reaction to Ripple’s submission that raised various concerns about the existing market structure draft bill. Ripple suggested that the term 'decentralization' should not be treated as a legal metric and that passive economic interests should be excluded from triggering securities laws.
In a separate initiative, Guillen released a discussion draft for the proposed 'Digital Markets Restructure Act of 2026.' This draft, which has yet to receive approval from SEC or CFTC leadership, seeks to classify certain cryptocurrencies as 'Digital Value Instruments' when they don’t fit neatly into existing categories like securities or commodities. Under this classification, cryptocurrencies would qualify as Digital Value Instruments if they exhibit at least three of five specified characteristics, including free transferability and a passive economic interest.
Furthermore, the draft calls for establishing risk-based jurisdictions for the SEC and CFTC, alongside federal preemptions to address inconsistent state law applications. It also includes safe harbor provisions aimed at fostering innovation in the sector. This discussion comes just ahead of a scheduled joint meeting between the SEC and CFTC to enhance regulatory coordination on digital assets, which was postponed from its initial date. The meeting will include discussions featuring SEC Chair Paul Atkins and CFTC Chair Mike Selig. The recent severe winter storm has also led to delays in the US Senate Agriculture Committee's markup of the crypto market structure bill.
As these discussions unfold, the crypto industry watches closely. The SEC’s evolving stance on digital assets could shape the future landscape of cryptocurrency regulation significantly. With ongoing debates about the nature of digital assets and their classification, the implications for innovation in this space are profound.