Ripple has expressed strong disapproval of a newly proposed draft bill designed to shape the structure of the cryptocurrency market, arguing that it could place XRP under the perpetual watchful eye of the U.S. Securities and Exchange Commission (SEC). This critique comes amid ongoing debates about how digital assets should be regulated, a topic that has been a source of contention between regulators and the crypto industry for years.
Ripple’s Concerns with the Draft Bill
The draft bill, which surfaced recently, aims to establish clearer guidelines for the classification and oversight of cryptocurrencies. But Ripple, which has been at the forefront of challenging regulatory constraints, believes that the bill could unfairly target XRP, among other digital currencies. According to Ripple, the proposal could lead to what it describes as “endless” oversight by the SEC—a prospect that worries both the company and its community of investors.
Ripple’s Chief Legal Officer, Stuart Alderoty, didn’t mince words in a statement earlier this week: “This draft bill could create a scenario where XRP is subject to an indefinite regulatory limbo, stifling innovation and growth in what is supposed to be a cutting-edge sector.” Alderoty’s concerns echo a broader sentiment within the crypto industry that regulatory frameworks should encourage, rather than hinder, technological advancement. As explored in Andreessen Horowitz’s warning of loopholes in draft crypto rules, the potential for regulatory overreach is a shared concern among industry leaders.
Industry Reactions and Broader Implications
The draft bill has sparked a flurry of reactions from other industry players as well. While some welcome the prospect of clearer rules that could potentially bring more institutional investors into the fold, others share Ripple’s apprehension about overreach. Critics argue that the proposed regulatory measures might place undue burdens on digital currencies, which could stifle their development and limit their potential use cases.
Blockchain analyst David Schwartz weighed in, stating, “The draft bill appears to be a double-edged sword. While it promises clarity, it also seems to cast a wide net that could catch even those assets that don’t fit traditional definitions of securities.” This nuanced take highlights the complex balancing act regulators face: providing clarity without curbing innovation. For a deeper dive into the regulatory implications, see our coverage of the White House crypto rules bringing SEC-CFTC clarity for US crypto firms.
Historical Context and Market Trends
Ripple’s unease isn’t without precedent. The company has been embroiled in legal skirmishes with the SEC since December 2020, when the agency filed a lawsuit alleging that Ripple conducted an unregistered securities offering through the sale of XRP. This ongoing battle has set the stage for Ripple’s cautious approach toward new regulatory proposals.
The outcome of Ripple’s legal tango with the SEC could set important precedents for how other cryptocurrencies are treated under U.S. law. It also underscores the broader trend of growing regulatory scrutiny in the crypto space, as governments worldwide grapple with how best to manage these emerging technologies.
What’s Next for Ripple and the Crypto Industry?
So, where does this leave Ripple and the broader cryptocurrency ecosystem? The draft bill is still in its nascent stages, and public consultations will continue as stakeholders weigh in. However, the debate around it raises fundamental questions about the future of cryptocurrency regulation in the United States—questions that don’t yet have clear answers.
As the legislative process unfolds, Ripple and other industry stakeholders will likely continue to advocate for a regulatory environment that encourages innovation while ensuring consumer protection. This ongoing dialogue will be critical for shaping a regulatory framework that balances these sometimes competing priorities.
In the coming months, the crypto community will be watching closely to see how these regulatory discussions evolve. Will Ripple’s concerns be addressed, or will the draft bill usher in a new era of stringent oversight? The implications could reverberate far beyond Ripple and XRP, affecting the entire digital asset landscape. For now, the fate of this draft bill—and by extension, the future of crypto regulation—remains an open question.
Source
This article is based on: Ripple Criticizes Draft Crypto Market Structure Bill: Details
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
