#StuartAlderoty , Rippleโs Chief Legal Officer, has outlined critical principles for the Securities and Exchange Commission (SEC) to follow in 2025. Speaking on the limits of SEC authority, Alderoty emphasized that the agencyโs jurisdiction is restricted to regulating securities transactions, not simple asset sales.
Using a gold bar as an analogy, Alderoty explained: โSelling a gold bar coupled with a contractual claim on a gold mine? Thatโs likely a security transaction. But selling the same gold bar without any post-sale entitlements? Thatโs an asset sale and beyond the SECโs policing power.โ He also criticized the notion that cryptocurrency tokens can transition from being classified as securities to non-securities, dismissing it as an unfounded legal concept.
๐๐ซ๐ข๐ญ๐ข๐๐ข๐ฌ๐ฆ ๐จ๐ ๐๐๐ ๐๐ฏ๐๐ซ๐ซ๐๐๐๐ก๐
The SECโs recent attempts to broaden its authority by categorizing cryptocurrency assets as securities have faced strong backlash from the crypto industry. Alderoty contended that cryptocurrency tokens, while capable of being used in security transactions, cannot inherently be classified as securities. He argued against the SECโs โregulation by enforcementโ strategy, calling it a self-serving approach aimed at extending its reach far beyond its legal boundaries.
๐๐ ๐๐๐ฐ ๐๐ซ๐ ๐ข๐ง ๐๐๐ ๐๐๐๐๐๐ซ๐ฌ๐ก๐ข๐ฉ?
The departure of SEC Chair Gary Gensler, known for his tough stance on cryptocurrencies, is expected to bring significant changes. Paul Atkins, his likely successor, is anticipated to adopt a more collaborative and balanced approach toward the crypto industry. However, reports suggest the SEC may not entirely loosen its grip on digital assets. Alderoty has urged the incoming leadership to end non-fraud-related crypto cases and prioritize working with Congress to establish clear regulatory frameworks.
With Rippleโs CLO leading the charge for reform, 2025 could mark a turning point in how the SEC engages with the cryptocurrency industry.