Ripple Labs has strongly urged the US Senate to critically re-evaluate its proposed crypto legislation. The blockchain firm warns that the current draft bill, the Responsible Financial Innovation Act of 2025, introduces significant ambiguity and potential for regulatory overreach. Such issues could severely impede innovation and the broader growth of the digital asset space.
The Peril of Perpetual SEC Oversight
A core concern highlighted by Ripple is the bill’s vague treatment of "ancillary assets." This broad classification could subject a wide array of digital tokens, including well-established ones like ETH, SOL, and XRP, to indefinite SEC jurisdiction. Ripple argues that this approach provides a "backdoor" for the SEC to assert authority over present-day transactions based on irrelevant past conduct. The firm insists that the SEC’s reach should be limited to specific, relevant transactions, not extended perpetually to an asset’s entire lifecycle. To mitigate this, Ripple proposes a fixed time limit for SEC jurisdiction over tokens initially sold as part of an investment contract. They also advocate for a clearer codification of the Howey Test, aiming to prevent subjective interpretations that could destabilize the market.
Demanding Clarity for Blockchain Activities
Beyond concerns about SEC power, Ripple calls on lawmakers to provide explicit guidelines on how core blockchain activities such as staking, mining, and governance should be regulated. The current lack of clarity creates significant uncertainty, discouraging innovation and hindering wider adoption of these technologies. Ripple specifically suggests that "entrepreneurial or managerial efforts" should not encompass routine network functions. In a positive note, the company supports a provision within the bill that would protect tokens actively traded for at least five years from retroactive enforcement. This measure, Ripple believes, would foster greater predictability and stability for established digital assets, helping the industry to move forward confidently.
