Ripple submitted a formal policy letter to the SEC Crypto Task Force on May 22, 2026, following an initial meeting held March 20, 2026, outlining proposals for stablecoin collateral treatment, capital requirement reforms, and on-chain registry systems for tokenized securities. The letter advocates treating fully backed payment stablecoins like RLUSD as cash-equivalent settlement instruments, applying a 0% regulatory haircut under verified reserve frameworks, and establishing consistent capital treatment for XRP alongside Bitcoin and Ethereum when performing similar functions. The proposals aim to reduce regulatory uncertainty for broker-dealers, custodians, and institutional market participants by shifting from label-based asset classifications to function-based frameworks that reflect how digital assets are used in settlement and liquidity operations. Ripple's engagement with the task force is part of broader 2026 digital finance policy developments as tokenization expands into mainstream markets, with the company positioning its May 22 letter as a structured framework to modernize market infrastructure in anticipation of deeper institutional adoption of tokenized assets.
Stablecoin Collateral Framework
Ripple's May 22, 2026 letter designates fully backed payment stablecoins issued under verifiable mint-and-burn structures with clear backing as high-quality collateral eligible for cash-equivalent treatment. The proposal specifies that institutions should be permitted to post such stablecoins as margin without incurring restrictive capital charges that currently limit their use in regulated markets. RLUSD is cited as an example asset meeting these criteria under the proposed framework.
Zero Haircut Advocacy
The letter advocates for a 0% regulatory haircut on stablecoin holdings like RLUSD when issued under verified reserve and issuance frameworks. Ripple states this treatment would classify such instruments as highly liquid and low-risk for capital adequacy purposes, making stablecoins more practical for institutional balance sheets and day-to-day market activity. The proposal targets recalibration of existing net capital requirements applied to digital asset collateral.
XRP Regulatory Parity Argument
Ripple's submission argues for consistent capital treatment of XRP and other non-security digital assets when they perform similar functions to Bitcoin and Ethereum. The letter states that inconsistent capital treatment across functionally similar assets creates unnecessary friction and distorts how institutions allocate liquidity and manage settlement exposure. The position seeks to establish function-based regulatory standards rather than classifications tied to asset labels.
On-Chain Registry Proposal
The May 22 letter proposes introducing an on-chain registry as the authoritative record for tokenized securities and settlement activity. Ripple's framework envisions shifting validation from fragmented off-chain systems to blockchain-based records to create a unified, transparent, and efficient system for tracking ownership and transfers of tokenized assets.
