- Ripple’s Chief Legal Officer, Stuart Alderoty, has outlined key regulatory principles for cryptocurrencies, as the cryptocurrency community anticipates a new SEC leadership in 2025.
- Alderoty advocates for collaborative regulation to foster market growth and innovation.
Ripple as a whole has garnered heightened attention especially when it comes to regulatory affairs. In fact, the Ripple vs SEC has been ongoing for the longest time and is still awaiting a final judgment.
As 2024 draws to a close and 2025 commences, Ripple’s Chief Legal Officer, Stuart Alderoty, has articulated a clear framework for cryptocurrency regulation in the U.S., urging the Securities and Exchange Commission (SEC) to adhere to foundational principles.
Let’s hope these principles won’t need repeating in 2025 and beyond:
1.The SEC only has jurisdiction over security transactions.
2.Selling a gold bar with a contractual right, title, or interest in my gold mine? Likely a security transaction.
3.Selling that same gold bar without…— Stuart Alderoty (@s_alderoty) December 31, 2024
Alderoty believes his remarks, which stress the importance of regulatory clarity and fairness, will set the stage for 2025 and decrease the frequency of repetitive advocacy efforts on these matters.
One of Alderoty’s great concerns is the sharp differentiation between security transactions and asset sales. He asserted that the SEC’s regulatory jurisdiction ought to be circumscribed to securities transactions, with straightforward asset sales falling outside its purview.
To clarify, Alderoty drew a comparison to gold transactions: a gold bar sold with contractual rights or stakes in a mining operation constitutes a security transaction under SEC jurisdiction.
Conversely, selling a gold bar without any associated rights represents a simple asset sale, exempt from SEC oversight. This analogy highlights the need for regulatory boundaries to respect the fundamental nature of transactions.
Alderoty also criticized the SEC’s expansive interpretation of disclosure requirements, suggesting the agency often stretches its authority in ways that serve its own interests. This critique resonates with the broader cryptocurrency community, which has long decried the SEC’s efforts to classify diverse crypto assets as securities.
Further addressing regulatory theories, Alderoty dismissed the notion that cryptocurrency tokens could transition from securities to non-securities, calling this idea legally baseless. While tokens may be used in security transactions, he argued, they are not inherently securities, a critical distinction as the SEC has spent years attempting to label cryptocurrencies as such in court battles.
These statements come at a pivotal moment as the SEC prepares for a leadership transition as pro-crypto Donald Trump returns to the white house on January 20, 2025.
It is worth mentioning that Trump’s presidency has proven to be a positive influence on the digital asset. Reminiscing, Trump’s presidency in 2018 coincided with XRP’s all-time high of $3.84, and his re-election in November 2024 saw the cryptocurrency surge to $2.86, its highest price in years.
Adding to the excitement, Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC), announced his resignation effective January 20, 2025. Gensler’s tenure has been marked by strict enforcement actions against crypto projects, including Ripple.
Additionally, his successor, Paul Atkins, is seen as more crypto-friendly, with past statements criticizing Gensler’s approach. Many believe this leadership change could pave the way for regulatory clarity and market growth.
