SEC's Use of 'Crypto Asset Security' Term Misleading, Says Ripple CLO

SEC's Use of 'Crypto Asset Security' Term Misleading, Says Ripple CLO

Ripple's Chief Legal Officer, Stuart Alderoty, has criticized the U.S. Securities and Exchange Commission (SEC) for using the term "crypto asset security" in its lawsuit against the company, calling it a misleading attempt to sway judges. In a series of tweets, Alderoty argued that the term is not defined by any statute, and that the SEC is intentionally using it to confuse the court. "The SEC’s use of the undefined term ‘crypto asset security’ is a classic example of the agency’s misleading court arguments," Alderoty wrote. "This undefined term is not in any statute, rule, or regulation." The SEC has argued that Ripple's XRP token is a security, and that the company should have registered it with the agency before selling it to investors. Ripple has denied these allegations, and the case is currently ongoing. Alderoty's comments highlight the ongoing debate over the regulation of cryptocurrency assets. The SEC has taken a hard line on the issue, arguing that many cryptocurrencies are securities that should be subject to the same regulations as stocks and bonds. However, the cryptocurrency industry has pushed back against this characterization, arguing that many cryptocurrencies are not securities and should not be subject to the same regulations.