Cryptocurrency firm Ripple has responded to the U.S. Senate’s request for input on the proposed crypto market structure bill, joining other major industry players calling for greater regulatory clarity.

Ripple’s Chief Legal Officer, Stuart Alderoty, shared the company’s response on X (formerly Twitter), emphasizing Ripple’s extensive experience dealing with regulators—particularly the SEC—positions it well to contribute meaningfully. According to Alderoty, the current draft of the bill fails to draw clear lines between the jurisdictions of the SEC and the Commodity Futures Trading Commission (CFTC), and instead introduces new legal uncertainty.

https://x.com/s_alderoty/status/1952844950166450540

📜 Ripple Opposes the Concept of “Supplemental Assets”

One of the most controversial aspects of the proposed bill is the introduction of the “supplemental asset” concept, which could subject decentralized tokens like XRP, ETH, and SOL to ongoing SEC oversight—even if the transactions don’t meet the definition of securities.

Ripple warns this could lead to overreach by the SEC and invites abuse of regulatory powers. Instead, Ripple suggests aligning the bill with the CLARITY Act, which offers a clearer framework for classifying crypto assets based on decentralization and market maturity. The company proposes that tokens operating on permissionless, decentralized networks for over five years should be exempt from securities regulation entirely.

⚖️ Fear of Future SEC Administrations

Ripple also stresses that the bill should prevent the SEC from exploiting legal gray areas to enforce regulations retroactively. The company references its own ongoing legal dispute with the SEC over XRP as a cautionary tale.

Ripple calls on Congress to clearly define when and how the Howey Test should apply to digital assets, rather than giving the SEC unchecked interpretive power that could be manipulated by future political administrations.

🏛️ Federal Law Should Take Precedence

In closing, Ripple argues that federal legislation should preempt conflicting state-level regulations, especially in areas like market structure, stablecoin issuance, custody standards, and token classification. Without national coordination, the company warns, regulatory fragmentation could stifle innovation and create unnecessary legal risks for the crypto industry.


#Ripple , #SEC , #xrp , #Cryptolaw , #Regulation

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