TLDR
- Ripple calls for clear SEC-CFTC boundaries to prevent regulatory confusion in crypto.
Ripple warns against “ancillary assets” classification, which could lead to SEC overreach.
Ripple urges Congress to codify the Howey Test to avoid future SEC misapplications.
Ripple advocates for federal preemption to ensure consistent crypto regulations across states.
Ripple has provided its input to the U.S. Senate Banking Committee’s Request For Information (RFI) on the draft Crypto Market Structure Bill. In its response, Ripple stressed the need for clearer regulatory boundaries, particularly between the SEC and CFTC, and voiced concerns over provisions that could lead to regulatory overreach. This comes amid ongoing scrutiny of crypto regulations in the U.S.
Ripple Calls for Clearer Regulatory Boundaries in Crypto Bill
Ripple’s Chief Legal Officer, Stuart Alderoty, shared the firm’s response to the Senate Banking Committee’s Request For Information (RFI) on the draft Crypto Market Structure Bill. He thanked the committee for the opportunity and highlighted Ripple’s decade-long experience with global regulators, including its legal battle with the SEC. The firm expressed its willingness to offer a unique perspective on the bill’s impact.
Ripple’s response primarily focused on regulatory clarity, specifically regarding the allocation of jurisdiction over digital assets between the SEC and CFTC. The company raised concerns that the bill fails to clearly define these boundaries, creating confusion for the industry. Ripple argued that the lack of clarity could complicate the regulatory environment further.
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
To address these issues, Ripple recommended revisions to the bill to refine the jurisdictional lines between the two agencies. The firm emphasized that a more balanced regulatory framework would not only provide clarity but also promote innovation while ensuring investor protection.
Concerns Over “Ancillary Assets” and Potential Overreach
Ripple raised concerns about the concept of “ancillary assets” introduced in the bill. The company argued that the classification of certain digital assets as ancillary could lead to regulatory overreach.
Ripple believes this approach might subject major tokens, such as XRP, ETH, and SOL, to ongoing oversight by the SEC, even if they operate on open, permissionless networks and do not exhibit characteristics of securities offerings.
Ripple suggested that the bill should avoid relying on the ancillary assets framework and instead align with the CLARITY Act’s approach to digital asset classification. This, the company argued, would reduce regulatory fragmentation and provide a more consistent and fair approach to classification.
Ripple also highlighted that mature, decentralized networks should be treated in a way that acknowledges their decentralized nature and lack of control by any single entity.
Ripple Recommendations for Token Classification and SEC Oversight
Ripple’s response to the U.S. Senate’s proposed Crypto Market Structure Bill highlights concerns about potential misuse of the Howey Test by the SEC. The company urged Congress to codify the test in a way that prevents future SEC leadership from manipulating or misapplying it.
While Ripple acknowledged positive regulatory shifts under the current SEC chair, it expressed concern that future administrations could interpret the rules differently, especially after the firm’s ongoing legal battle with the SEC over XRP.
The firm also raised concerns over token classification, particularly for tokens that have been operating on permissionless networks for more than five years. Ripple recommended that such tokens should not automatically be deemed securities, as they have already been integrated into the crypto ecosystem for a significant period. This would help avoid unnecessary regulatory burdens on established tokens.
Lastly, Ripple called for federal preemption of state laws in areas like market structure, stablecoin issuance, and token classification. The firm argued that consistency across jurisdictions is essential to prevent confusion and ensure a unified regulatory framework.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
