Ripple encourages SEC to launch a real-world crypto sandbox

Ripple is urging the SEC to overhaul crypto surveillance by quickly tracking innovation, uncovering regulatory gaps and launching a real-world sandbox that uncovers future US digital finance.

Ripple says SEC sandboxes must reflect live terms to guide crypto regulations

Ripple submitted a proposal to the US Securities and Exchange Commission (SEC) Crypto Task Force on May 28, 2025, advocated for the development of a regulatory sandbox to support the growth of digital assets. The company claimed:

Regulatory sandboxes for digital asset products, such as tokenized Real World Asset (RWAS), enable digital asset markets, innovative products, and value-added services that operate in a controlled environment, while undergoing regulatory oversight.

It argued that it would provide regulators and businesses with a means to cooperate in real-time with regulators and businesses and identify areas where existing financial rules may be inadequate.

The submission highlights that the sandbox “serves as a practical mechanism for understanding how both regulators and market participants interact with existing frameworks, highlighting whether current regulations may be effective or where additional guidance is needed.”

Rather than relying on small pilots, the company recommended a test environment for the building that closely reflects the live market. More about Crypto Firm:

Regulatory sandboxes need to exceed limited small pilots. Conditions like production need to be simulated and allow companies to test their products and infrastructure under circumstances that closely reflect the real market environment.

“This includes testing using actual customer cohorts, actual transaction volumes, and, where relevant, cross-border operational factors,” Ripple said.

To support that argument, Ripple highlighted case studies from other jurisdictions. The Singapore Project Guardian, European Blockchain Regulation Sandbox, and UK Digital Securities Sandbox were cited as examples of successful frameworks that fuse innovation and regulatory oversight. These initiatives contribute to strengthening financial rules and institutional preparations that are more responsive. The company urged the SEC to consider similar U.S. mechanisms to help regulators and innovators work together to collaborate on policies and support the transition of sandbox-tested solutions into a regulatory market.