PANews reported on January 1 that Ripple Chief Legal Officer Stuart Alderoty tweeted to urge the U.S. SEC to follow six key principles and prudently regulate encryption in 2025 and beyond:

  • The SEC only has jurisdiction over securities transactions;
  • The sale of gold bars that carry contractual rights, title or interest in a gold mine may be a securities transaction;
  • The sale of the same gold bar without post-sale rights or obligations is simply an asset sale, which the SEC has no authority to regulate;
  • The SEC’s remit will not expand based on its self-serving view of who it thinks is more “deserving” of disclosure;
  • A token is never a security, although it can be the subject of a securities transaction;
  • The notion that tokens can “evolve” from being securities to being non-securities is a myth with no legal basis.