TechFlow reported on January 2, 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—they can only become the subject of a securities transaction.
Alderoty used gold trading as an analogy: selling gold with attached mining contract rights might constitute a securities transaction, but straightforward gold buying and selling falls entirely outside the SEC's regulatory reach. He specifically pointed out that the notion that "a token can evolve from a security to a non-security" is legally unfounded, and stressed that the SEC cannot expand its regulatory scope based on a subjective determination that certain parties "should receive more disclosure."
