Ripple Calls for Clear Crypto Bill Framework to Avoid Overreach

Ripple has taken a proactive stance in the evolving regulatory landscape by submitting a detailed response to the U.S. Senate Banking Committee’s Request for Information (RFI) regarding the proposed Crypto Market Structure Bill [1]. The company emphasized the need for a clear and consistent regulatory framework to address overlapping jurisdictions between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Ripple warned that the current drafting of the bill could lead to regulatory overreach, especially concerning major blockchain assets such as XRP, ETH, and SOL.

One of Ripple’s key concerns is the proposed concept of “ancillary assets,” which it argues could extend SEC oversight to non-securities transactions. The company highlighted the risk of prolonged regulatory uncertainty for tokens that may not meet traditional securities definitions. Ripple recommended aligning the bill with the CLARITY Act’s proposed structure, including a five-year exemption for tokens operating on open, permissionless networks. This would provide clarity and reduce unnecessary regulatory burdens [1].

Stuart Alderoty, Ripple’s Chief Legal Officer, underscored the company’s extensive experience working with global regulators and its history with the SEC. He noted that clarity in oversight has been long overdue, emphasizing Ripple’s commitment to fostering a stable and innovative digital asset market [1]. The company’s response also calls for a clear and consistent application of the Howey Test to digital assets. Ripple expressed concerns that the current language in the bill is too ambiguous, potentially leading to enforcement strategies that fluctuate with leadership changes rather than maintaining a neutral and predictable legal standard.

In addition to jurisdictional clarity, Ripple advocated for federal preemption over state laws in critical areas such as market structure, custody, and stablecoin issuance. The company argued that a national regulatory framework is essential to eliminate the current patchwork of regulations, which creates uncertainty for market participants. Ripple’s stance reflects a broader industry sentiment that a unified regulatory approach is necessary to support the long-term development of the digital asset ecosystem [1].

Ripple’s engagement with the Senate comes as the broader industry continues to push for legislative clarity. The firm’s advocacy is expected to influence the final version of the bill, potentially setting a precedent for future U.S. digital asset regulation. With the Ripple-SEC legal dispute nearing a resolution, this shift from litigation to policy engagement highlights Ripple’s strategic pivot toward shaping the regulatory environment from within, aiming to ensure that digital asset regulation remains both fair and adaptable [1].

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