XRP News Today: Ripple Warns New Crypto Bill Could Prolong XRP Legal Uncertainty

Ripple’s General Counsel, Sarah Cliffe, has raised concerns that a proposed U.S. cryptocurrency bill could extend the regulatory uncertainty surrounding XRP, the company’s native token. The legislation, currently under congressional review, seeks to create a broader regulatory framework for digital assets but may complicate the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) [1]. Cliffe warned that the bill could delay judicial clarity regarding whether XRP qualifies as a security under existing law, potentially prolonging the legal and regulatory limbo in which the token remains [1].

Ripple has been embroiled in a high-profile legal battle with the SEC, which alleges the company conducted an unregistered securities offering through XRP sales. A federal appeals court recently dismissed the SEC’s case, but the agency is appealing the decision, and the broader legal landscape remains unresolved. Cliffe emphasized that while the bill aims to provide clarity, its language and structure could introduce ambiguity by linking judicial decisions to an evolving regulatory environment, making it harder to determine XRP’s legal status [1].

The concerns reflect the broader challenge of regulating a fast-moving sector. Ripple has called for a technology-neutral framework that acknowledges the functional use of tokens like XRP in cross-border payments without automatically classifying them as securities. The lack of consensus on how to categorize different tokens has complicated legislative efforts, with Ripple’s legal team highlighting the need for a balanced approach that supports innovation while protecting investors [1].

Industry analysts have noted that the proposed bill could influence the regulatory treatment of other cryptocurrencies in the U.S. market. However, XRP’s legal status remains a key point of contention, with its regulatory outcome directly affecting Ripple’s business operations and financial strategy. The absence of a definitive legal resolution may deter companies from integrating XRP into their services due to the risk of regulatory pushback [1].

As legislative discussions continue, stakeholders in the crypto industry are advocating for a nuanced regulatory approach that accounts for the diverse functions of different tokens. Ripple’s warning underscores the importance of crafting legislation that fosters innovation without stifling technological progress. With ongoing court proceedings and evolving regulatory developments, the future of XRP—and Ripple’s broader business model—remains uncertain [1].

Source: [1] Ripple Legal Chief Warns Crypto Bill Could Lock XRP in Endless Regulatory Limbo (https://news.bitcoin.com/ripple-legal-chief-warns-crypto-bill-could-lock-xrp-in-endless-regulatory-limbo/)