Stuart Alderoty, Ripple’s Chief Legal Officer, is optimistic that the Securities and Exchange Commission (SEC) will adopt a legally sound perspective on crypto regulation in the coming year.
He stressed the necessity for the SEC to respect established legal frameworks and cautioned against the dangers of overstepping its regulatory boundaries.
Concerns on SEC’s Jurisdiction
In a statement issued on Tuesday, Alderoty voiced his concerns regarding the SEC’s jurisdiction.
He argued that the agency should limit its authority strictly to securities transactions.
To illustrate the distinction between securities and basic asset dealings, he offered an example: a sale of a gold bar linked to rights over a gold mine would typically be governed by securities regulations.
Conversely, if the same gold bar were sold independently—without any associated rights—it should simply be considered an asset sale, outside the SEC’s regulatory purview.
Alderoty further urged the SEC to avoid extending its reach through vague interpretations of disclosure requirements.
He emphasized the importance of the agency operating within well-defined legal parameters.
Classification of Digital Tokens
When discussing digital tokens, Alderoty asserted that while tokens can form part of transactions involving securities, they themselves should not be classified as securities.
He expressed a desire for the SEC to abandon the unfounded notion that tokens can transition from being securities to non-securities.
With changes in leadership on the horizon at the SEC, particularly with Paul Atkins potentially stepping in as the new chair under the incoming Trump administration, many are speculating that the ongoing legal battle between Ripple and the SEC could see a resolution soon.
Given Atkins’ pro-cryptocurrency stance, his tenure might cultivate a more favorable environment for Ripple, expediting a resolution of the case or possibly leading the SEC to drop its lawsuit altogether.
The Future of XRP
Nevertheless, Alderoty highlighted that the crucial question still lies in whether XRP should be designated as a security.
This issue may undergo review by the Second Circuit Court, which could either reinforce or extend the positive rulings previously rendered by Judge Torres concerning Ripple’s situation.
Market analysts suggest that any change in the SEC’s approach or a possible withdrawal of its appeal could trigger a significant surge in XRP’s price.
Source: CryptoBriefing
