Ripple has submitted its response to the U.S. Senate’s draft Crypto Market Structure Bill, advocating for explicit jurisdictional clarity between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to prevent regulatory overlap.
Central to Ripple’s critique is opposition to the proposed ‘ancillary asset’ framework. The company contends this classification could subject established digital assets, including XRP, Ethereum (ETH), and Solana (SOL), to potentially prolonged SEC oversight without clear criteria for decentralization.
To mitigate regulatory uncertainty, Ripple urged the adoption of the classification framework outlined in the previously proposed CLARITY Act, arguing it offers a more defined approach to distinguishing securities commodities within the digital asset space.
Drawing from its own high-profile legal battle with the SEC, Ripple stressed the critical importance of preventing an ‘enforcement-led’ path to regulation. The company emphasized that the current approach creates uncertainty for market participants and stifles innovation.
Ripple concluded by calling on Congress to decisively address key areas within the proposed legislation, with a particular focus on establishing a functional market structure and achieving coherent national regulatory standards.