XRP News Today: Ripple Warns Senate Crypto Bill Risks Regulatory Overlap and Innovation Stagnation

Ripple Labs has issued a formal response to the U.S. Senate Banking Committee concerning the proposed Crypto Market Structure Bill, expressing concerns over regulatory clarity and potential overreach by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The company highlighted the need for defined jurisdictional boundaries to avoid overlapping and inconsistent enforcement actions that could create uncertainty for market participants and developers [2][6].

Ripple specifically pointed to risks for major crypto assets such as XRP, Ethereum (ETH), and Solana (SOL) under the current draft of the bill. The firm argues that ambiguous language—particularly the concept of “ancillary assets”—could lead to an expanded SEC jurisdiction that stifles innovation and locks certain tokens into prolonged regulatory limbo [4][7]. Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized that the bill fails to address jurisdictional overlaps and may worsen uncertainty for entrepreneurs and developers, underscoring the need for Congress to provide clarity [3][8].

The company has proposed several amendments to the bill, including clearer definitions of crypto asset categories and a more structured division of responsibilities between federal regulators. Ripple advocates for a regulatory framework that supports innovation while ensuring investor protection, warning that the current language could inadvertently hinder growth in the sector [2][9]. Its position aligns with broader industry concerns over the SEC’s increasing influence and calls for a coherent, forward-looking regulatory approach [5][8].

Ripple also suggested that incorporating principles from the CLARITY Act could help provide exemptions for mature tokens, offering a potential path to reduce regulatory friction for many decentralized finance (DeFi) and Layer 1 assets. The company’s engagement with lawmakers signals an ongoing effort to shape the regulatory landscape in a way that fosters clarity and consistency [3][6].

As the bill progresses through the legislative process, Ripple and other industry stakeholders are expected to continue advocating for revisions that address the unique challenges of digital assets while maintaining investor safeguards [7][8].

Sources:

[1] Ripple Calls for Clear Crypto Regulation in Senate Bill (https://www.ainvest.com/news/ripple-calls-clear-crypto-regulation-senate-bill-2508/)

[2] Ripple CLO Urges Senate to Avoid Permanent SEC Control Over Crypto (https://coincentral.com/ripple-clo-urges-senate-to-avoid-permanent-sec-control-over-crypto/)

[3] Ripple Criticizes Draft Crypto Market Structure Bill: Details (https://www.tradingview.com/news/u_today:a59f9012a094b:0-ripple-criticizes-draft-crypto-market-structure-bill-details/)

[4] 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/)

[6] XRP News Today: Ripple Hits SEC Over 'Ambiguous' Crypto Rules in Senate Push (https://www.fxempire.com/forecasts/article/xrp-news-today-ripple-hits-sec-over-ambiguous-crypto-rules-in-senate-push-btc-dips-1539141)

[7] Ripple Seeks Revised Jurisdiction Terms in Senate Crypto Legislation (https://www.xt.com/en/blog/post/ripple-seeks-revised-jurisdiction-terms-in-senate-crypto-legislation)

[8] Ripple Responds to U.S. Senate on Crypto Bill, Says XRP, ETH, and SOL Could Face Unfair Regulation (https://coinpedia.org/news/ripple-responds-to-u-s-senate-crypto-bill-says-xrp-eth-and-sol-could-face-unfair-regulation/)

[9] Ripple Responds to U.S. Senate RFI on Crypto Market Structure Bill (https://coingape.com/ripple-responds-to-u-s-senate-rfi-on-crypto-market-structure-bill/)