The chief lawyer of Ripple warns about a dangerous law

The Senate proposal on cryptocurrencies has me worried, and I'm not the only one. Ripple's chief lawyer, Stuart Alderoti, is on the warpath. Why? Because this law could sink us all into an endless regulatory hell.

On August 5, Alderoti sent a direct message to the Senate Banking Committee, and he did not mince words. According to him, this attempt to divide jurisdiction between the SEC and the CFTC is a total disaster that will only make things worse:

"This proposal creates more ambiguity than clarity for the industry by attempting to delineate the SEC's jurisdiction over digital assets."

Let's be clear: what they intend is to place the majority of tokens under the absolute control of the SEC, even when they have nothing to do with them. It's a flagrant abuse of power!

What infuriates me the most is how they define "ancillary assets". Basically, if you ever sold a token as part of an investment contract, the SEC will keep you under surveillance forever. Seriously? What about Ethereum, Solana, and XRP? They are established coins that are used daily. The SEC wants to control them as if they were their toys.

Alderoti explains it better than I do:

"This approach could subject established and widely traded tokens on open networks —including ETH, SOL, and XRP— to ongoing SEC scrutiny, even when current transactions do not have characteristics of a securities offering."

And let's not forget the infamous Howey test, which the SEC has been manipulating at will for years. Without clear legislative boundaries, it will remain an instrument of unlimited discretion in the hands of bureaucrats.

This law protects no one except the interests of the SEC. Investors and developers will be the ones to pay the price. We need to resist!

XRP +1.16% (2.8914)

Congress must establish specific criteria and stop this regulatory madness before it is too late.