– Ripple’s CLO warns U.S. lawmakers a Senate crypto bill risks indefinite SEC oversight for XRP and major tokens like Ethereum.
– The bill’s “ancillary assets” definition could expand SEC jurisdiction to functional blockchain tokens, contradicting market realities.
– Alderoty criticizes the bill’s reliance on subjective Howey test for securities classification without clear statutory boundaries.
– Proposed reforms include grandfathering long-traded tokens, protocol activity protections, and federal preemption to avoid conflicting state laws.
– Ripple argues current regulatory ambiguity hinders cross-border payment solutions, urging balanced frameworks to prevent stifling innovation.
