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Ripple News – Ripple Warns of Regulatory Confusion in Crypto Market Structure Bill
Ripple News – Ripple Labs, a leading blockchain company, has officially submitted its feedback to the U.S. Senate Banking Committee regarding the proposed Crypto Market Structure Bill. This draft legislation aims to regulate the booming digital asset industry but, according to Ripple, it falls short in providing regulatory clarity.
Ripple Warns of Jurisdictional Confusion
In its response, Ripple emphasized that the bill’s attempt to split oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is vague and risks creating overlapping regulations. This ambiguity could leave investors and businesses uncertain about which rules apply and which agency enforces them. Ripple urges lawmakers to establish clear boundaries to prevent continued legal uncertainty that has plagued the U.S. crypto market.
Calls to Prevent Regulatory Overreach
Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted the firm’s extensive experience working with regulators and its high-profile legal battle with the SEC over XRP’s classification. He warned against “regulation by enforcement,” where rules are shaped by lawsuits rather than legislation. Ripple recommends codifying legal tests such as the Howey Test to ensure it is applied fairly and doesn’t inappropriately target decentralized assets.
Federal Law Should Prevail Over State Regulations
Ripple also stressed the importance of a unified national framework, advocating for federal precedence especially in areas like stablecoin issuance, token classification, and custody standards. This approach, Ripple argues, will promote innovation and attract investment in the U.S. crypto space, preventing a patchwork of conflicting state laws.
