Ripple Labs has officially submitted its feedback to the U.S. Senate Banking Committee, calling for more clarity in crypto regulation.
Ripple Responds to Senate Committee Inquiry
Ripple's response is part of a broader Request for Information (RFI) initiated by the Committee following the introduction of the Crypto Market Structure Bill — a draft aimed at organizing the digital asset space. Stuart Alderoty, Chief Legal Officer of Ripple, announced the submission through a post on X (formerly Twitter). He thanked the Committee for inviting industry opinions. Alderoty noted that the company's extensive experience in working with global regulators and tough legal battles, especially with the U.S. Securities and Exchange Commission (SEC), provided Ripple with valuable insights.
Issues of Legal Ambiguity
Ripple expressed concern over the ambiguity regarding the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in crypto regulation. The company suggested that the draft bill fails to clearly define the roles of both agencies, potentially resulting in overlapping regulatory authority and leaving businesses and investors uncertain about applicable rules. Ripple urged lawmakers to establish clearer boundaries between the SEC and CFTC to avoid legal uncertainty within the crypto industry.
Ripple's Proposals for Improving the Bill
Ripple also warned that the proposed bill leaves too much room for future SEC leadership to interpret rules in ways that could harm the industry. The company referenced its long-running legal battle with the SEC regarding whether XRP is a security. Ripple proposed to formally define legal tests such as the Howey Test to prevent misinterpretation that could include decentralized assets. Additionally, the company raised the issue of the need for unified federal regulations to prevent inconsistent rules across states.
Ripple Labs continues to advocate for clarity and consistency in crypto regulation, emphasizing the importance of clear boundaries between regulatory agencies and the need for a unified federal policy.
