Ripple Fights Back Against Senate Crypto Bill—Warns of SEC Power Grab
Ripple just threw a regulatory grenade—and Wall Street might want to take cover.
The crypto giant slammed the Senate's proposed legislation, calling it a thinly veiled attempt by the SEC to expand its jurisdiction. No numbers? No problem—this is pure political theater.
Why it matters: If the SEC gets its way, innovation gets handcuffed. Again.
Ripple's stance? Clarity shouldn't come at the cost of crushing an entire industry. But hey—since when has bureaucracy ever missed a chance to overreach?
Bottom line: Another day, another power play dressed up as 'investor protection.' Meanwhile, TradFi still can't decide if crypto is a threat or a profit center.
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Ripple argues that the SEC’s jurisdiction should be limited to transactions directly tied to initial investment contracts—not to all future trades of the underlying token. To address this, the company proposes a time-bound window for SEC oversight and urges Congress to clearly define when and how the Howey Test applies.
“If Congress intends to codify the Howey test,” Ripple added, “it should do so in a way that prevents misuse or manipulation by the SEC.”
While supporting the broader goal of regulatory clarity, Ripple warns the current bill risks introducing more ambiguity instead. The company’s response reflects wider industry calls for balanced legislation that fosters innovation without opening the door to unchecked enforcement.
