Stuart Alderoty, the general counsel of Ripple Labs, came down hard on the U.S. Securities and Exchange Commission [SEC] for its use of the term “crypto asset security.” In a recent X post, Alderoty argued that the term is “fabricated” and has no legal basis.
The regulator has been using the term “crypto asset security” in its ongoing legal battle against Ripple, alleging that the blockchain firm sold unregistered securities. Ripple, however, maintains that XRP is a digital asset, not a security.
Alderoty’s comments come as the SEC faces criticism over its approach to regulating cryptocurrencies. Critics argue that the SEC’s broad interpretation of securities laws is stifling innovation in the crypto industry.
In his statement, Alderoty emphasized that the term “crypto asset security” is not defined in any statute and is therefore a “fabricated term” that the SEC is using to justify its actions. He urged the SEC to stop trying to deceive judges by using this term.
The regulator has not yet responded to Alderoty’s comments. However, the legal battle between Ripple and the SEC is expected to continue for some time. The outcome of this case could have significant implications for the future of the cryptocurrency industry in the United States.
Meanwhile, Ripple is expanding its footprint in Korea and Japan, starting with a few key announcements – aiming to strengthen the foundations of crypto infrastructure to support blockchain utility and usability for institutional adoption.
Ripple’s Big Bet on Asia: XRPL’s Ecosystem Expands
As per the announcement post, the blockchain firm is partnering with AI & Metaverse tech company Futureverse to securely custody its assets. Futureverse has already adopted the XRPL NFT standard, uses XRP as the gas token on the Root Network, and is integrated with the XRPL DEX to supply network liquidity.
Ripple in its post stated that the broader XRP community is committed to bringing new programmability, including smart contracts, to the XRPL dev ecosystem in 2025 – through the XRPL EVM sidechain as well as exploring native capabilities on XRPL Mainnet.
