The Chief Legal Officer at Ripple Stuart Alderoty has publicly criticized the U.S. Securities and Exchange Commission (SEC) over its use of the phrase \u201ccrypto asset security.\u201d<\/p>\n
In a post published on his official X account, the lawyer argued that the term is a made-up concept that has no legitimate grounding.<\/p>\n
In addition, Alderoty accused the financial watchdog of using the words to mislead judges and the public in its legal actions against the crypto industry.<\/p>\n
\u201cThe term \u2018crypto asset security\u2019 is nowhere to be found in any statute\u2014it\u2019s a fabricated term with no legal basis,\u201d the attorney stated in the September 2 social media post<\/a>. \u201cThe SEC needs to stop trying to deceive judges by using it.\u201d<\/p>\n His remarks came after the regulator, in an August 30 filing, warned that it might challenge any plan by the defunct crypto exchange FTX to use stablecoins to repay creditors. It claimed the exchange\u2019s portfolio contains \u201ccrypto asset securities,\u201d a term the Ripple counselor argues lacks any statutory definition.<\/p>\n Alderoty\u2019s rebuke is not the first time the agency\u2019s use of the contentious phrase has been questioned. Recently, a California court expressed similar sentiments in a case the Commission brought against crypto exchange Kraken. On that occasion, the court voiced its concern, describing the term as \u201cunclear at best and confusing at worst.\u201d<\/p>\n The attorney has repeatedly pointed out the inconsistencies<\/a> in the regulator\u2019s stance on the status of several digital assets.<\/p>\n Not long ago, it issued a Wells Notice to the OpenSea<\/a> NFT marketplace, indicating a potential lawsuit on the grounds that some NFTs sold on the platform could be considered unregistered securities. Alderoty challenged the agency, stating<\/a> that it had previously decided not to pursue enforcement action in a case eerily similar to OpenSea\u2019s.<\/p>\n According to him, 48 years ago, the Commission ruled that art galleries, even when promoting and selling to buyers that had investment motives, didn\u2019t need to register with it. He argued that this precedent should extend to digital assets, where the intent is to foster innovation and creativity rather than adhere to outdated regulatory frameworks.<\/p>\n The SEC\u2019s actions have sparked a broader debate within the crypto community about the need for clear and consistent regulations. Many industry leaders, including those at Ripple, argue that the financial watchdog\u2019s approach, which often relies on enforcement rather than clear guidelines, creates uncertainty and stifles innovation.<\/p>\n The post Ripple\u2019s Legal Chief Blasts SEC for Using \u2018Fabricated\u2019 Term in Crypto Cases<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The Chief Legal Officer at Ripple Stuart Alderoty has publicly criticized the U.S. Securities and Exchange Commission (SEC) over its use of the phrase \u201ccrypto asset security.\u201d In a post published on his official X account, the lawyer argued that the term is a made-up concept that has no legitimate grounding. Lawyer, Court, Call Out […]<\/p>\n","protected":false},"author":0,"featured_media":3266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/3265"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3265"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/3265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/3266"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Highlighting SEC Inconsistencies<\/h2>\n