Ripple Labs, responding to the Responsible Financial Innovation Act of 2025, warned on August 5 that vague definitions, including for ancillary assets and blockchain activities, could lead to perpetual SEC oversight on established tokens like ETH, SOL, and XRP.
Ripple Labs submitted a response on August 5 to the Senate's consultation on the Responsible Financial Innovation Act of 2025, arguing that vague definitions in the draft, including the term 'ancillary assets,' risk imposing perpetual SEC oversight on established tokens. The firm recommends limiting SEC jurisdiction to specific transactions, introducing a fixed time period for tokens sold via investment contracts, and clarifying the application of the Howey test to avoid regulation of core blockchain functions.