#StuartAlderoty , Ripple’s 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 agency’s jurisdiction is restricted to regulating securities transactions, not simple asset sales.
Using a gold bar as an analogy, Alderoty explained: “Selling a gold bar coupled with a contractual claim on a gold mine? That’s likely a security transaction. But selling the same gold bar without any post-sale entitlements? That’s an asset sale and beyond the SEC’s policing power.” 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.
𝐂𝐫𝐢𝐭𝐢𝐜𝐢𝐬𝐦 𝐨𝐟 𝐒𝐄𝐂 𝐎𝐯𝐞𝐫𝐫𝐞𝐚𝐜𝐡🚀
The SEC’s 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 SEC’s “regulation by enforcement” strategy, calling it a self-serving approach aimed at extending its reach far beyond its legal boundaries.
💎𝐀 𝐍𝐞𝐰 𝐄𝐫𝐚 𝐢𝐧 𝐒𝐄𝐂 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩?
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 Ripple’s CLO leading the charge for reform, 2025 could mark a turning point in how the SEC engages with the cryptocurrency industry.