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- Ripple warns new crypto bill could trap tokens like ETH, SOL, XRP under constant SEC watch.
- Upcoming SEC meeting may decide XRP appeal withdrawal, possibly clearing the path for ETF momentum.
Ripple has voiced strong concerns over a new draft crypto bill, warning that the legislation could expand the Securities and Exchange Commission’s reach over digital assets.
The company’s Chief Legal Officer, Stuart Alderoty, submitted a detailed letter to Senate Banking Committee Chair Tim Scott, arguing that the proposed framework introduces more confusion than clarity.
Ripple’s criticism centers on how the bill outlines SEC jurisdiction. Alderoty warned that the current version would place most crypto tokens and projects under strict SEC control, regardless of whether they actually fall under the definition of a security. Alderoty wrote,
The draft creates more ambiguity than clarity for the industry in its attempt to delineate SEC jurisdiction over digital assets.
He specifically flagged the concept of “ancillary assets” in the bill as an issue. Ripple believes the classification could leave projects like Ethereum (ETH), Solana (SOL), and XRP exposed to long-term SEC monitoring, even if their use doesn’t resemble a securities sale. The concern is that future regulatory shifts could affect how these projects are treated, regardless of current interpretations.
Ripple Proposes Alternative as SEC Prepares for Key Meeting
Ripple has encouraged legislators to consider the CLARITY Act instead, which it argues is more appropriate for the nature of decentralized projects. One of the main suggestions is that any token that has been running on an open, permissionless blockchain for five or more years should be assumed to be outside the purview of securities law. This, in turn, would give more stability for mature projects and limit sudden overhauls of oversight.
“There is no objective statutory endpoint,” Alderoty warned, adding companies can be exposed to SEC scrutiny indefinitely. He criticized the possibility of changes in administration affecting the manner in which the agency enforces cryptocurrency laws. This may provide room for unforeseen changes that will disrupt companies that thought they were compliant.
In an X post, Alderoty said, Ripple’s global expertise with regulators enables the firm to provide feedback as the U.S. weighs how it wants to develop crypto rules. He urged a structure that promotes innovation and maintains protection for crypto users. He added,
With over a decade of experience working with regulators all over the world—and hard-earned lessons from our SEC fight—Ripple welcomes the chance to offer our unique perspective as Congress advances legislation that protects consumers and unlocks crypto innovation.
XRP Price Weakens as Regulatory Uncertainty Mounts
While the legislative debate continues, market attention has been directed towards the SEC’s progress with its lawsuit against Ripple. A closed SEC meeting is scheduled for Thursday, August 7.
During this meeting, Chair Paul Atkins and commissioners can vote on whether the appeal of the agency over the Programmatic Sales of XRP should be withdrawn. August 15 is the date a withdrawal filing with the U.S. Court of Appeals is due.
It comes six weeks after Judge Analisa Torres rejected a request from both sides for a guiding ruling on settlement terms. If the SEC drops the appeal, it can open the way for progress on requests for XRP-related exchange-traded fund (ETF) products. Investors see that outcome as a possible boost for renewed momentum for the token.
At present, XRP is trading at $2.94 with a decrease of 2.34% in the past 24 hours. A break above the $3 level can spark a move towards $3.20. A retest of 28th Jul’s high at $3.3302 is possible if momentum persists. But if XRP falls below August 5’s low of $2.9184, there is a possibility that it might slide towards August 3’s low at $2.7254.
