Ripple’s Chief Legal Officer Stuart Alderoty has called on the U.S. Securities and Exchange Commission (SEC) to take a more measured approach to crypto regulation. Addressing the need for a legal and fair framework, Alderoty outlined six key principles that he hopes will guide regulatory clarity in the coming years. SEC Jurisdiction: The SEC's jurisdiction covers only securities transactions, not all asset sales. Asset and Security: Selling a gold bar with contractual rights attached to it in a gold mine may constitute a securities transaction, but selling the same gold bar without the post-sale rights is merely an asset sale and is outside the jurisdiction of the SEC. Post-Sale Obligations: Transactions that do not involve post-sale obligations to the buyer should not be regulated as securities. Clarifying Disclosures: The SEC cannot arbitrarily expand its reach based on subjective views about who deserves more disclosure. Tokens Are Not Securities: A token is never a security, although it may be sold as part of a securities transaction. Token Conversion is a Fallacy: The idea that a token can convert from a security to a non-security has no legal basis. Alderoty said the SEC should respect legal definitions and avoid overreach, and expressed hope that these principles would become standard practice by 2025. Related News: Surprise Stablecoin Temporarily Loses Its $1 Stablecoin Stability as a Single Whale Makes a Massive Sale Cryptocurrency attorney MetaLawMan responded to the principles set forth by Alderoty, largely agreeing with his claims but offering a brief explanation: “A token is almost never a security. In rare cases where a token confers rights to distributions, dividends, or equity-like benefits in the issuing project, it may qualify as a security.” *This is not investment advice. Continue Reading: Ripple (XRP) Lawyer Lists 6 Things They Expect From The SEC In 2025
