Ripple Calls for Clear Crypto Regulation in Senate Bill

Ripple has called for greater regulatory clarity in the U.S. Senate’s draft Crypto Market Structure Bill, urging lawmakers to clearly define the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In its formal response to the Senate Banking Committee’s Request for Information (RFI), Ripple highlighted the need for a balanced and coherent regulatory framework that avoids prolonged and inconsistent enforcement actions [1]. The company emphasized that a lack of clarity in oversight could create confusion across the digital asset industry, hindering innovation and market stability [1].

Ripple specifically criticized the bill’s inclusion of the “ancillary asset” concept, warning that it could subject major cryptocurrencies like XRP, ETH, and SOL to extended SEC scrutiny even if they lack traditional securities characteristics. The firm recommended aligning the bill with the CLARITY Act’s proposed framework, which would establish a predictable standard for token classification. Ripple also proposed that tokens active for at least five years on open, permissionless networks be excluded from securities classification to avoid unwarranted regulatory exposure [1].

The firm also urged Congress to clearly define how the Howey Test applies to digital assets, expressing concerns that open-ended language in the draft could enable enforcement tactics that favor specific regulatory interpretations depending on leadership changes. Drawing from its own legal experience with the SEC, Ripple emphasized the importance of preventing regulatory ambiguity that leads to protracted legal battles and operational uncertainty [1].

In addition to these concerns, Ripple supported federal preemption over state laws in key areas such as market structure, custody standards, and stablecoin issuance. It argued that national consistency is essential for fostering innovation and ensuring a level playing field across the industry. The company’s stance reflects a broader industry push for a unified regulatory approach that avoids the current patchwork of conflicting state and federal interpretations [1].

The Senate’s proposed CLARITY Act, part of a larger legislative initiative by the Banking Committee, aims to clarify the roles of federal agencies in overseeing digital assets. A draft was released in early August 2025, inviting public input. Ripple’s response aligns with industry calls for clear and enforceable rules that support innovation while maintaining investor protections [1].

Ripple’s advocacy marks a strategic shift from legal confrontation to constructive engagement with policymakers. The company’s emphasis on regulatory clarity signals a desire to operate within a structured environment while ensuring that rules are fair, predictable, and supportive of technological advancement [1]. As the Senate moves toward finalizing the bill, Ripple’s input is expected to play a significant role in shaping the final legislative framework and setting a precedent for future digital asset regulation in the U.S. [1].

Source:

[1] Ripple Seeks Balanced Regulatory Framework for Crypto ... (https://moneycheck.com/ripple-seeks-balanced-regulatory-framework-for-crypto-in-senate-bill/)

[2] Trinidad and Tobago investigates unregistered crypto ... (https://www.facebook.com/groups/newshoundtt/posts/3120138****447152/)