Ripple Legal Chief Calls for Clear Rules on New Crypto Tokens

Why Investor Protections Are Taking Center Stage in Crypto

Buying into a brand-new crypto project can feel exciting, but it also comes with real risks. On October 23, 2026, Stuart Alderoty, Chief Legal Officer at RippleXRP+1.42%, raised the alarm about the losses everyday investors face when buying new tokens. He called for clearer promises from project creators and stronger accountability across the crypto industry.

Market conditions highlight why clarity matters. At the time of reporting, BitcoinBTC+0.01% traded around $80,788 (-0.11%) while EthereumETH-0.72% sat near $2,360 (-0.81%). Digital assets experience ongoing price movement, and past performance of digital assets is no guarantee of future results.

Alderoty Demands Issuer Accountability

Alderoty, who also serves as president of the National Cryptocurrency Association (NCA), shared his thoughts on X (formerly Twitter). He voiced support for the Securities and Exchange Commission's (SEC) proposed Regulation Crypto Assets, emphasizing that buyers need reliable information before spending their money.

Too many everyday Americans are losing money to new offerings. That has to change. Investors deserve to know what’s promised before they buy and who’s accountable.

His statements align with an October 20 submission by Ripple and the NCA to the SEC. That filing urged regulators to establish formal rules for fundraising alongside essential trading safeguards.

Survey Reveals High Loss Rates Among Token Buyers

To highlight the challenges buyers face, the NCA commissioned a study conducted by The Harris Poll between October 5 and October 9. The study surveyed 1,004 U.S. crypto holders, including 401 people who recently participated in new crypto offerings.

The findings show significant risk in early-stage token sales:

• 50% of recent buyers lost money over the prior 12 months due to hacks, abandoned projects, or outright fraud.
• Only 48% of crypto holders felt confident that the information available to them was enough to make informed choices.
• 80% of respondents agreed that standardized disclosures from token creators would help protect buyers.
• The survey estimates there are now 67 million crypto holders in the United States, representing a massive group affected by these issues.

Understanding the SEC's Proposed Rules

The SEC introduced its proposed framework, called Regulation Crypto Assets, on August 18. This proposal seeks to give eligible crypto projects registration exemptions while keeping investor protections intact.

Two Proposed Fundraising Pathways

1. Small Exemption: Projects could raise up to $5 million over a four-year period.
2. Larger Exemption: Projects could raise up to $75 million annually.

Under both options, project issuers would be required to deliver clear disclosures. They would also remain subject to strict antifraud and anti-manipulation rules under federal oversight.

Regulators Issue Warnings on Rising Crypto Scams

The call for transparency comes at a time when scams remain a serious threat. On October 5, the SEC alongside five partner organizations released a joint warning about deceptive investment schemes.

Common tactics highlighted in the warning include:

• Fraudsters impersonating close friends, financial advisors, or government regulators.
• Platforms displaying fake investment returns to build false confidence.
• Scammers allowing small test withdrawals early on before locking accounts completely.
• Fake exchange websites and schemes promising to multiply crypto deposits.

Practical Steps Proposed by the NCA

To solve these issues, the NCA recommended several specific, common-sense measures for future token sales:

• Point-of-sale disclosures: Project details must be visible right where buyers purchase tokens.
• Security updates: Teams must promptly notify the public after major security incidents.
• U.S. legal address: Issuers must provide an address where legal notices can be officially delivered.
• Public status tracking: Clear indicators must show whether a project's required regulatory filings are current.

Ripple Prime Expands Institutional Features

Alongside its legal advocacy, Ripple continues to expand its institutional offerings. The company recently introduced Ripple Prime, giving institutional traders 24/7 access to real-world asset perpetual swaps across more than 100 traditional financial markets, including stocks.