Ripple Calls for Clear Crypto Regulation to Avoid Stifling Innovation

Ripple’s Chief Legal Officer, Stuart Alderoty, has responded with an open letter to the U.S. Senate Banking Committee addressing the committee’s recent Request for Information (RFI) on digital asset regulation. The letter, shared publicly on social media, outlines Ripple’s perspective on regulatory clarity, jurisdictional boundaries, and the risks of overreach in the evolving crypto landscape [1].

Ripple emphasized the need for a stable and clear regulatory framework to support innovation and consumer protection in the digital asset space. The company argued that prolonged securities oversight over tokens like XRP, which have been traded openly for years, could hinder market development and technological progress. Ripple called for a legal framework that reflects the dynamic nature of digital assets without stifling innovation through excessive regulatory intervention [1].

A central concern in the letter is the proposed definition of “ancillary assets,” which Ripple warned could extend the SEC’s jurisdiction indefinitely over established tokens. The company also expressed caution about the misuse of the Howey test in digital asset regulation, advocating for a more balanced and legally consistent approach that avoids arbitrary enforcement [1].

Ripple further urged for clearer jurisdictional boundaries between the SEC and CFTC to prevent regulatory conflicts and reduce uncertainty for market participants. The company emphasized that without a definitive legal framework, the industry could face ongoing instability, making it difficult for firms to operate with confidence [1].

In its proposed solutions, Ripple recommended grandfathering provisions for tokens that have been publicly traded for a substantial period, exempting them from future securities regulations. It also called for clear statutory guidelines for core blockchain activities such as mining and staking, arguing that these should not be subject to securities law obligations [1].

The letter concluded with a call for a transparent and stable regulatory environment that prioritizes innovation while ensuring consumer protection. Ripple’s proactive response underscores its commitment to engaging with policymakers and shaping a regulatory landscape that supports both the digital asset industry and public interest [1].

This move by Ripple reflects a broader trend among crypto firms to engage with U.S. lawmakers as digital assets gain increasing attention in public policy discussions. By directly addressing the Senate Banking Committee’s questions, Ripple positions itself as a key player in the dialogue between the private sector and regulatory bodies, seeking to influence the direction of future legislation [1].

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[1] https://www.facebook.com/photo.php?fbid=738104625769415&set=a.130****63246274&type=3