Ripple Pushes Back on Senate Crypto Bill, Citing SEC Overreach Concerns

Ripple Labs has called on the U.S. Senate to revise its draft of the Responsible Financial Innovation Act of 2025, warning that the current language could lead to excessive SEC control and regulatory confusion.

The blockchain firm submitted formal feedback on August 5, voicing concerns that the bill—meant to modernize digital asset oversight—may unintentionally stifle innovation.

A major point of contention is the draft’s treatment of “ancillary assets,” a vague term that Ripple says could give the Securities and Exchange Commission (SEC) ongoing authority over established tokens like ETH, SOL, and XRP, even when such assets are no longer tied to securities offerings.

“This approach could subject long-established, widely traded tokens… to perpetual SEC oversight,” Ripple noted, “even when current or future transactions bear none of the hallmarks of a securities offering.”

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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.