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Key Takeaways:
- Ripple urges Congress to fix SEC-CFTC jurisdiction gaps in the draft crypto bill.
- The firm warns against overbroad regulation via the “ancillary assets” provision.
- Ripple advocates protections for mature tokens and federal preemption of state laws.
Ripple has formally entered Washington’s crypto policy debate, submitting a detailed response to the U.S. Senate Banking Committee’s draft Crypto Market Structure Bill. In its response, Ripple warned that the current draft risks worsening regulatory confusion rather than resolving it.
Ripple: Bill Could Deepen SEC-CFTC Turf Wars
Chief Legal Officer Stuart Alderoty noted Ripple’s firsthand experience with regulatory friction, referencing the company’s ongoing legal battle with the SEC. Ripple criticized the bill for failing to clearly define the roles of the SEC and CFTC, potentially continuing the jurisdictional tug-of-war that has long hampered the industry.
Thank you to @BankingGOP for the opportunity to respond to your Request For Information. With over a decade of experience working with regulators all over the world—and hard-earned lessons from our SEC fight—Ripple welcomes the chance to offer our unique perspective as Congress…
— Stuart Alderoty (@s_alderoty) August 5, 2025
Ancillary Assets Provision Raises Red Flags
A central concern is the bill’s use of the “ancillary assets” label, which Ripple says could give the SEC a backdoor to permanently regulate cryptocurrencies like ETH, SOL, and XRP, even if their network activity doesn’t resemble traditional securities. Ripple instead supports the CLARITY Act, which it believes better accounts for decentralized networks.
Ripple Proposes Clearer Guidelines for Established Tokens
Ripple recommended that tokens operating on open, permissionless networks for over five years should be presumed outside securities laws, providing legal certainty to mature projects. The company also urged lawmakers to codify the Howey Test explicitly and in a narrowly defined manner to prevent its misuse by future SEC administrations.
Also Read: What’s Behind Ripple’s XRP Surge? Whale Moves and a Proven Philanthropy Strategy
Ripple’s response also called for federal preemption of conflicting state laws in areas such as token classification and stablecoin regulation. They warned that a fragmented regulatory landscape would stifle innovation and leave U.S. developers at a disadvantage.
Alderoty thanked lawmakers for including Ripple in the discussion, emphasizing that the company’s decade-long legal journey makes it uniquely qualified to advise on practical, forward-looking crypto rules. One crypto user remarked on social media that this level of Senate engagement signals that Ripple’s influence in shaping U.S. crypto law is only just beginning.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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