Ripple Calls for Regulatory Clarity in U.S. Crypto Legislation
In a significant move following its prolonged legal battle with the SEC, Ripple has offered robust feedback on the U.S. Senate's draft crypto bill for 2025. Their response underscores deep concerns about the proposed legislation's lack of clarity, particularly regarding regulatory oversight. Ripple argues that the bill’s vagueness could exacerbate the ongoing jurisdictional dispute between the SEC and CFTC, creating an environment that stifles innovation and pushes crypto development out of the United States.
Critical Feedback on "Ancillary Assets"
One of Ripple’s primary points of contention revolves around the draft bill’s "ancillary assets" section. They argue that this definition is excessively broad, posing a significant risk of misclassifying legitimate, decentralized tokens—such as XRP or Ethereum—as securities, merely due to historical events like an ICO. To mitigate this, Ripple proposes a straightforward solution: tokens that have operated on a public, open blockchain for over five years should be explicitly exempt from SEC jurisdiction. This targeted amendment aims to protect mature, decentralized assets from being subjected to inappropriate regulatory frameworks.
The Crippling Impact of Regulatory Ambiguity
Beyond specific definitions, Ripple’s critique highlights a broader, more detrimental issue: the existing regulatory "tug-of-war" between the SEC and CFTC. This jurisdictional overlap creates immense uncertainty for "builders"—developers, founders, and protocol teams—who are crucial to the crypto ecosystem's growth. With no clear boundaries, these innovators are forced to dedicate valuable resources to legal strategy rather than product development, leading to a measurable talent drain from the U.S. The trend is evident in the declining share of U.S. crypto developers globally, signaling a potential loss of leadership in Web3. Ripple asserts that clear regulatory boundaries are essential to foster innovation, ensure compliance, and prevent the U.S. from falling behind in the global crypto race.
