Ripple's Chief Legal Officer: The SEC Should Not Repeat Regulatory Missteps in 2025

According to TechFlow, on January 2, Ripple's Chief Legal Officer, Stuart Alderoty, posted on the X platform, clearly defining the regulatory boundaries of the U.S. Securities and Exchange Commission (SEC). He emphasized three key principles: first, the SEC's regulatory authority is limited to securities trading and does not extend to all asset transactions; second, the scope of regulation cannot be arbitrarily expanded based on the SEC's subjective judgment; third, tokens themselves are never securities, but can only be the subject of securities trading.

Alderoty explained through an analogy of gold trading: if the sale of gold includes mining contract rights, this may constitute a securities transaction; however, if it is purely a sale of gold, it is entirely outside the SEC's regulatory scope. He specifically pointed out that the assertion "tokens can evolve from securities to non-securities" is legally untenable and emphasized that the SEC cannot expand its regulatory scope based on subjective determinations that certain entities "should receive more disclosure."