Ripple, Cardano, Chainlink Push for Binding SEC Rules Around Tokens
Ripple and Cardano , alongside other blockchain organizations, are pushing the SEC to write clearer, binding crypto rules rather than relying on interpretive guidance.Why Cardano and Five Others Want Firmer LanguageThe Cardano Foundation posted on X that the SEC classified ADA as a digital commodity, not a security, earlier this year.That classification currently sits only in the explanatory preamble to proposed Regulation Crypto Assets, not in the operative rule text itself, and the organizations want that gap closed.The letter asks the SEC to formally define digital commodities as assets whose value comes from a blockchain’s own operation and supply and demand, rather than from expectations of profit tied to someone else’s managerial efforts.It also draws a distinction between network tokens and financial claims, noting that native tokens like ADA serve functions such as paying transaction fees, securing networks and enabling governance, none of which grant holders rights to a company’s future income or profits.Cardano Foundation co-signed the letter alongside Stellar Development Foundation , Hedera , Aptos Labs , Ava Labs and Chainlink Labs .The group also wants the SEC to carry forward classifications already identified in its March 17, 2026 interpretation, arguing that explicit rule language would give developers more certainty about where to build and support both capital formation and investor protection.Why Ripple Made a Similar Push YesterdayAs , Ripple Labs sent its own letter backing the SEC’s proposed framework, arguing XRP shouldn’t automatically count as a security simply because it was originally sold through investment contracts.Ripple’s central argument: an investment contract involving a token is the security, not necessarily the token itself, citing the XRP court ruling as precedent.Ripple also pushed the SEC to reject decentralization tests and avoid treating corporate backing or active blockchain development as automatic grounds for securities classification.The company called for broader safe harbor protections under investment company and adviser laws, along with state-law preemption for secondary-market trading.What’s at Stake for the Broader MarketA National Cryptocurrency Association study cited in Ripple’s letter estimated that clearer crypto regulations could have brought 382 to 1,518 additional token offerings and $325 million to $1.12 billion in capital raised in the US between 2022 and October 2026.Both letters make the same core ask: without binding rule language, token classifications stay tied to guidance regulators could revisit or walk back, leaving exchanges, institutions and investors without real certainty.Preview Image: Shutterstock