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Ripple responds to the Senate’s crypto bill with bold warnings and key demands.
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The company raises concerns over SEC control and regulatory confusion.
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Could this be a turning point for the regulation of XRP and other tokens?
Ripple is stepping into Washington’s crypto debate, responding to the U.S. Senate Banking Committee’s Request for Information (RFI) on the draft Crypto Market Structure Bill released in July. Chief Legal Officer Stuart Alderoty said Ripple is in a prime position to weigh in, given its decade-long regulatory experience and the bruising lessons learned from its ongoing SEC battle.
Ripple Warns of Confusion and Overreach in New Crypto Bill
In its response, Ripple warned that instead of creating clarity, the draft bill risks adding more ambiguity by muddying the lines between SEC and CFTC jurisdiction. The company urged lawmakers to refine these boundaries to strike a fair oversight balance, avoiding the type of turf war that has plagued crypto regulation for years.
Ripple took particular aim at the bill’s use of the “ancillary assets” concept, a classification they believe could open the door to regulatory overreach. They warned that it could subject major tokens like ETH, SOL, and XRP to perpetual SEC oversight, even when their transactions bear no resemblance to securities offerings. Instead, Ripple advocates for Congress to adopt the CLARITY Act’s approach, which more accurately reflects the decentralized nature of mature networks.
Tokens Operating for 5 Years Should Be Outside Securities Law, Says Ripple
Ripple also proposed that tokens operating on open, permissionless networks for five or more years should be presumed outside securities law. This would give established projects certainty and protect them from shifting regulatory whims.
With scars still fresh from its SEC lawsuit, Ripple is pushing for guardrails that prevent the agency from using open-ended provisions to expand its powers. They suggested Congress explicitly codify the Howey Test for digital assets if it intends to use it, but in a way that prevents selective interpretation by future SEC leadership.
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Ripple also pushed for federal rules to preempt conflicting state laws, especially in areas like token classification, stablecoin issuance, custody standards, and overall market structure. This, they argue, is key to avoiding fragmented oversight that could stifle innovation.
Ripple Gains Recognition in Washington’s Crypto Discussions
Alderoty thanked the Senate for the opportunity to contribute and hinted that Ripple’s experience gives it a unique voice in shaping the future of crypto regulation. In short, the bill needs sharper definitions, protections against regulatory overreach, and a recognition of crypto’s decentralized realities if it’s going to work for the industry and investors alike.
One crypto user, Davei Boi, reacted to Stuart Alderoty’s post by stressing that this development is a big deal. He pointed out that the U.S. government is actively seeking information from Ripple, signaling the seriousness of the engagement. He hinted that more significant steps could follow soon, suggesting this might just be the start of deeper involvement between Ripple and lawmakers.
