Ripple has formally addressed the U.S. Senate Banking Committee, raising issues regarding potential regulatory confusion linked to the proposed crypto market structure bill.
Ripple's Senate Engagement
Ripple has responded to the U.S. Senate's Request for Information concerning the proposed **Crypto Market Structure Bill**. The response highlights the need for clearer regulatory lines to prevent excessive oversight on key assets such as **XRP, ETH, and SOL**. The response was led by **Stuart Alderoty**, Ripple's Chief Legal Officer, who emphasized the importance of clarity in regulation.
Concerns Over Asset Classification
The main concern revolves around the classification of **"ancillary assets"**, which Ripple warns may lead to ongoing SEC oversight even for non-securities transactions. This could create significant regulatory uncertainty for affected tokens. Ripple advocates for a unified regulatory standard, supporting **federal preemption** over state laws.
Need for Regulatory Reform
Ripple’s efforts underscore the need for regulatory reforms amid evolving crypto markets. This reflects broader industry calls for **clarity** to mitigate market volatility and uncertainty. Analysts suggest that the current state of the proposed bill could unsettle market confidence, putting additional assets at risk of being classified under ambiguous terms. Ripple suggests adopting the **CLARITY Act model**, allowing decentralized networks to be exempt after five years of operation.
Ripple continues its active pursuit of regulatory clarity in the crypto market, as demonstrated by their engagement with the Senate and calls for reforms that are critical to the future of a stable crypto industry.
