Ripple (XRP) Lawyer Lists 6 Expectations from the SEC in 2025 in 6 Points!

Ripple's Chief Legal Officer Stuart Alderoty called on the U.S. Securities and Exchange Commission (SEC) to adopt a more measured approach to cryptocurrency regulation.

Alderoty summarized six key principles that he hopes will guide regulatory clarity in the coming years, addressing the need for a legal and fair framework.

• SEC's Jurisdiction: SEC's jurisdiction covers not all asset sales, only securities transactions.
• Asset and Security: Selling a gold bar subject to rights in a gold mine may constitute a security transaction, but selling the same gold bar without post-sale rights is only an asset sale and outside the jurisdiction of the SEC.
• After-Sales Obligations: Transactions that do not include after-sales obligations towards the buyer should not be issued as securities.
• Explanatory Notes: The SEC cannot arbitrarily expand the scope of access based on subjective opinions about who deserves more disclosure.
• Tokens are not Securities: While a token can be sold as part of a securities transaction, it is never a security.
• Token Conversion is a Fallacy: The idea that a token can convert from a security to a non-security is devoid of legal basis.

Alderoty stated that the SEC should respect legal definitions and avoid going too far, expressing hope that these principles will become standard practice by 2025.

Cryptocurrency lawyer MetaLawMan largely agreed with Alderoty's principles and responded to his allegations, but made a small statement:

"A token is almost never a security. In rare cases where a token grants rights to distribution, dividends, or similar benefits in the issuing project, it may be classified as a security."