Usman Salis
Ripple warns that XRP (Ripple) could face endless SEC oversight under a proposed market structure bill, potentially hurting the token's price.
Ripple just hit back at a new crypto regulation bill that could spell trouble for XRP. The company responded to Senator Tim Scott's Banking Committee, slamming the proposed digital asset framework for giving the SEC too much power.
While Ripple supports clear crypto rules, they say this bill creates more confusion instead of clarity. The legislation would let the SEC treat most tokens like securities, even ones that shouldn't be under their control.
XRP Could Face Perpetual SEC Control
The biggest problem for XRP holders is the bill’s definition of “additional asset.” It could leave XRP under the SEC’s watch forever, simply because it was tied to an investment contract during early sales, even if the current transactions are not securities offerings.
There's no exit mechanism in the bill. Once labeled, tokens stay regulated indefinitely. This regulatory limbo could seriously hurt XRP's price and adoption, as investors avoid assets with unclear legal status.
Ripple Wants XRP (Ripple) Protection Through "Grandfathering"
Ripple isn't just complaining - they want grandfathering for long-traded tokens like XRP that have built strong markets.
"Once a robust, liquid market has formed, it should not be disrupted by retroactive or ongoing government intervention," Ripple stated.
XRP has been around for over a decade with real use cases. Ripple believes established tokens should be judged on what they are today, not their initial launch structure.
Impact on XRP Price Outlook
This regulatory battle could make or break XRP's future. If the bill passes unchanged, XRP stays in regulatory purgatory - historically bad for any asset's price.
But if Ripple's changes get adopted, XRP could finally get the clarity needed to unlock its potential. For now, XRP investors need to watch how this unfolds.
Usman Salis
