Ripple Sounds Alarm: Senate’s Crypto Bill Paves Way for SEC Power Grab

Ripple just dropped a regulatory grenade in D.C.—and the SEC might be grinning.

The blockchain giant warns that Congress' shiny new crypto legislation could hand the Securities and Exchange Commission unchecked authority. We've seen this movie before: regulators getting a inch and taking a light-year.

Behind the scenes: This bill's fine print allegedly contains loopholes wide enough to drive a Bitcoin mining rig through. 'Overreach' isn't just possible—it's practically baked in, claims Ripple's legal team.

Meanwhile, Wall Street banks quietly lobby for stricter rules—because nothing kills disruptive innovation like a 300-page compliance manual. The irony? These are the same institutions that brought us 'too big to fail' in 2008.

Final thought: When regulators and incumbents hold hands, decentralized tech always pays the price. The 'protection' racket continues.

He warns: the proposed bill gives too much unchecked power to the SEC.

No clarity = no innovation.#XRP #Ripple #CryptoRegulation pic.twitter.com/BCORNPtTZk

— John Squire (@TheCryptoSquire) August 6, 2025

Current Definition of “Ancillary Asset” Risks Significant Regulatory Overreach

Ripple, with first-hand experience of being in high-stakes legal battle with the SEC, claims that the bill contains vague language and could be manipulated by regulators to expand their authority.

“The current definition of “ancillary asset” risks significant regulatory overreach because it effectively presumes that any token once offered in connection with an investment contract places future transactions of that token by the “originator” under SEC jurisdiction—indefinitely,” the company stated.

Ripple’s Chief Legal Officer, Stuart Alderoty, contends that the SEC’s authority should be strictly limited to the specific transaction that qualifies as an investment contract under the Howey Test. The proposed bill WOULD allow the SEC to use a token’s historical sale as a pretext to regulate all future transactions on secondary markets. 

Alderoty said that the draft provides a “backdoor to assert jurisdiction over present-day transactions based on conduct that is either irrelevant to the transaction at issue or barred from enforcement by fundamental legal protections.”

XRP ATH: Ripple Touched $3.65 In July Before Retracing

XRP hit an all-time high of $3.65 on the 18th of July before cooling off slightly to around $3.46. That puts it above its 2018 peak and firmly back in the spotlight. It’s not just retail euphoria pushing this one. Institutional interest this time looks stronger, with XRP ▲1.27% overtaking Tether to become the third biggest crypto by market cap. Trading volume went parabolic into tens of billions, something you cannot see every day.

After years of dormancy and courtroom drama, XRP just silenced all skeptics with an all-time high power move. On the 18th of July, 2025, XRP hit $3.65, finally topping the $3,40 record from back in 2018. Although the coin retraced, this rally wasn’t some fluke by any means. Market data shows XRP’s spot volume surged to $20 billion, with derivatives clocking in over $46 billion. This is a 135% surge for the spot and a 162% for the derivatives.

Key Takeaways

•  Ripple’s concerns extend beyond just token classification. The company urged lawmakers to provide clear rules on which core blockchain activities—such as staking, mining, and participating in governance—should be regulated as securities.

• Given its decade-long experience navigating the murky waters of US crypto regulation, Ripple stated it is in a prime position to weigh in on the proposed legislation.