Ripple has formally backed the U.S. Securities and Exchange Commission's proposed cryptocurrency regulation.

On Oct. 21 local time, blockchain media outlet U.Today reported that Ripple told the SEC the cryptocurrency industry needs clearer rules and that it should abandon a controversial enforcement-focused approach.

The position came amid discussion of the SEC's proposed "Crypto Asset Rules". Ripple made clear it supports the proposal and stressed that the industry needs predictable standards in advance, rather than after-the-fact enforcement by regulators.

Ripple's core argument has two parts. One is that it supports the regulatory framework proposed by the SEC. The other is that the existing enforcement-led approach is no longer appropriate for the industry. Ripple formally backed the "SEC's proposed Crypto Asset Rules" and demanded that regulators "abandon the controversial enforcement-focused approach."

Ripple also urged a change in the direction of regulatory practice. The company said the cryptocurrency industry needs clearer rules, rather than the current enforcement-heavy response. It reflects a view that market participants should be able to predict the standards they must follow to run their businesses.

The remarks show that regulatory clarity is again emerging as a key issue in the cryptocurrency market. Ripple did not oppose regulation itself, but said the way regulation works should be clearer and more consistent. Attention has therefore turned to whether the SEC will flesh out the framework or keep its enforcement-first response as it has in the past.

Ripple's public support is being read as a signal that condenses the direction of regulation the industry wants. The industry often sees unclear standards as a bigger burden than a regulatory vacuum. In this situation, Ripple lent weight to the proposed rules themselves while also delivering a message that the way they are applied must change.

The key point to watch is whether the SEC will put more emphasis on presenting clear standards by reflecting industry demands. What Ripple called for was not regulatory easing but closer to regulatory predictability. Discussion is expected to develop around what rules should govern the cryptocurrency industry and how much weight should be placed on institutional design rather than enforcement.