Ripple's Legal Chief Urges Cautious Crypto Regulation by SEC

According to Odaily, Ripple's Chief Legal Officer, Stuart Alderoty, outlined six key principles on New Year's Eve, urging the U.S. Securities and Exchange Commission (SEC) to adopt a cautious approach to cryptocurrency regulation. Alderoty emphasized that the SEC's jurisdiction is limited to securities transactions. He noted that selling gold bars with contractual rights, ownership, or mining interests might constitute a securities transaction. However, selling the same gold bar without any post-sale rights or obligations is merely an asset sale, which falls outside the SEC's regulatory authority. Alderoty further argued that the SEC's jurisdiction should not expand based on its subjective view of who should disclose information. He asserted that tokens are not inherently securities, although they can be the subject of securities transactions. Additionally, he dismissed the notion that a token can "evolve" from a security to a non-security as a fictional fallacy without legal basis. Alderoty's remarks highlight the ongoing debate over the appropriate regulatory framework for cryptocurrencies in the United States.