Altcoins News

Story: Ripple to SEC: Build Real-World Crypto Sandboxes or Risk Falling Behind

By Maheen Hernandez

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Ripple has officially asked the U.S. Securities and Exchange Commission (SEC) to establish live, real-world testing environments—known as crypto sandboxes—to foster innovation…

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In a detailed letter sent on May 28, Ripple made the case for a major shift in how digital asset products like tokenized real-world assets (RWAs) are regulated in the U.S.

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According to Ripple, the current approach to crypto oversight is outdated and stifling innovation.

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“Regulatory sandboxes should go beyond limited, small-scale pilots,” Ripple said in the submission.

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In other words, Ripple wants to see digital asset products tested under realistic conditions: with actual customers, real transaction volumes, and even cross-border interactions.

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A regulatory sandbox is a controlled environment where companies can test new technologies under the watch of regulators.

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Ripple believes that sandboxes will allow both sides—industry players and government agencies—to learn from one another in real time.

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“We believe a regulatory sandbox for digital asset products, like tokenized RWAs, allows digital asset markets, innovative products, and value-creating services to operate in a…

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To support its case, Ripple pointed to examples from other countries that have already embraced similar frameworks. These include:

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Singapore’s Project Guardian – A joint effort by the Monetary Authority of Singapore (MAS) and major financial institutions to explore tokenization and decentralized finance…

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The European Blockchain Regulatory Sandbox – A program allowing blockchain-based solutions to be tested across EU member states in collaboration with regulators.

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The UK’s Digital Securities Sandbox – Designed to test digital securities under conditions that mimic real-world trading and market activity.

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Ripple argued that these international examples show how innovation and regulation can go hand in hand. The result?

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“The U.S. risks falling behind if it doesn’t adopt similar mechanisms,” the company warned.

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This isn’t the first time Ripple has asked for clearer regulations around digital assets. The company has been locked in a legal battle with the SEC for years over whether XRP,…

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