Ripple, a company known for its digital assets, has officially responded to a Request for Information issued by the U.S. Senate Banking Committee concerning new digital asset legislation.
Ripple's Response to the Senate Request
Ripple's Chief Legal Officer, Stuart Alderoty, expressed gratitude to the Committee on X for the opportunity to share insights, highlighting the company's international experience in working with regulators and lessons learned from its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC).
Concerns Over SEC Jurisdiction
Ripple raised concerns that the proposed bill expands SEC authority too broadly. The company argues that this could lead to uncertainty in the classification of tokens like XRP, ETH, and SOL, which may fall under indefinite SEC oversight simply because of their historical involvement in investment contracts. The response emphasizes the need for legislative clarity to prevent regulatory overreach.
Ripple's Proposals for Token Regulation
The company proposed that tokens that have been freely and widely traded for at least five years should be excluded from securities regulation. This measure aims to create legal certainty and prevent overreach that could destabilize mature markets, while also protecting developers and network participants. Furthermore, Ripple calls for federal legislation to resolve conflicts in state laws regarding token classification.
Ripple's response to the U.S. Senate Banking Committee brings to the forefront important questions about the future of digital asset regulation and classification. The proposed changes could significantly impact the stability and growth of the cryptocurrency market.
