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

ChainCatcher news, 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 transactions, not 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 may only become the subject of securities transactions.

Alderoty explained through an analogy with gold trading: if the sale of gold includes mining contract rights, this may constitute a securities transaction; however, a simple sale of gold is completely outside the SEC's regulatory scope. He specifically pointed out that the assertion that "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 information disclosure."