Ripple has raised significant concerns about regulatory ambiguities in the U.S. Senate’s proposed cryptocurrency legislation, warning that its current language could classify decentralized tokens such as XRP and Ethereum as securities.
The draft bill’s wording might subject tokens like Ethereum to SEC jurisdiction based on historic initial coin offerings, despite operating as decentralized networks today. This approach complicates regulatory statuses and creates legal uncertainties across the sector.
In response, Ripple proposed a regulatory exemption for tokens operating on public blockchains for over five years – a standard aligned with XRP’s legal history. The company also urged clearer jurisdictional delineation between the SEC and CFTC to eliminate overlapping oversight that stifles technical advancement.
Ripple cited a striking decline in U.S. crypto developer share, which fell from 38% in 2015 to 19% in 2024. The firm attributed this exodus to regulatory confusion driving talent toward jurisdictions with more favorable compliance frameworks, notably in Asia.