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- Ripple’s Legal Chief Stuart Alderoty endorses the CLARITY Act, calling it a vital step toward a transparent U.S. crypto regulatory framework.
- The bill seeks to classify most cryptocurrencies as commodities, placing them under CFTC oversight rather than the SEC.
- The proposal includes a four-year ‘safe harbor’ for token offerings to encourage innovation while reducing regulatory risk.
Ripple’s Chief Legal Officer, Stuart Alderoty, has publicly voiced strong support for the recently introduced Digital Asset Market Clarity Act, commonly known as the CLARITY Act, calling it a crucial advancement toward establishing a transparent and consistent regulatory framework for cryptocurrencies across the United States.
In a statement, Alderoty emphasized that “clarity shouldn’t be controversial,” highlighting that the legislation promises a practical, well-reasoned approach to overseeing the rapidly evolving digital asset space. He praised the bipartisan group of lawmakers spearheading the bill, including Representatives French Hill, Glenn Thompson, Angie Craig, GOP Majority Whip Dusty Johnson, Don Davis, Bryan Steil, and others, noting their efforts as vital in addressing the urgent need for adaptable crypto regulations.
The CLARITY Act, introduced on May 29, 2025, aims to delineate the roles of key regulatory bodies, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), regarding digital assets. Under the proposed framework, the majority of cryptocurrencies would be classified as virtual commodities, regulated primarily by the CFTC, rather than as securities overseen by the SEC. This shift represents a significant departure from current practice and could ease regulatory uncertainty for crypto projects and investors alike.
Ripple Backs New Bill Supporting Crypto Legal Clarity
Rep. Bryan Steil expressed that the bill arrives at a “golden period” for digital assets, aiming to foster growth by providing a predictable legal landscape. The bill protects innovation while maintaining necessary consumer safeguards and addresses the current confusion that often stalls development and investment in the sector.
Among its notable provisions, the CLARITY Act introduces a four-year “safe harbor” for initial token offerings. This exemption applies if the underlying blockchain network is deemed mature and the fundraising remains under $75 million within 12 months. Such measures encourage responsible innovation without exposing developers and investors to disproportionate regulatory risk.
Alderoty also underlined Ripple’s ongoing commitment to regulatory clarity, citing a recent letter sent to the SEC urging clearer guidelines on when a digital asset ceases to qualify as an investment contract. He argued that not all crypto assets, especially those traded on secondary markets, should be treated uniformly under securities laws. The letter referenced legal analyses, including insights from securities expert Lewis Cohen, supporting the view that most routine crypto transactions do not fit the definition of securities.
Ripple legal fight aligns with CLARITY Act goals
This comes at a pivotal moment as Ripple’s legal battle with the SEC approaches resolution, with XRP drawing renewed interest as a potential top crypto asset. SEC Commissioner Hester Peirce’s recent “New Paradigm” speech raised critical questions about when digital assets break free from securities classifications, questions Ripple’s legal team directly addressed in their communication.
Should the CLARITY Act pass through Congress, it could mark a landmark moment in U.S. crypto regulation, setting a foundation for balanced oversight that nurtures innovation while ensuring consumer protection. As the digital assets ecosystem matures, the bill’s advancement signals growing recognition among lawmakers of the need for a smart, flexible approach to this fast-moving industry.
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