Stuart Aldeorty, Chief Legal Officer at Ripple shown Some basic principles he believes the SEC should follow in 2025.

The company's top legal mind has stressed that the SEC has jurisdiction over security transactions only.

According to Alderotti, the SEC cannot monitor simple asset sales.

“Selling a gold bar with a contractual right, title or interest in my gold mine? Likely a security transaction. Selling the same gold bar with no after-sale rights or obligations? Just an asset sale – the SEC can’t police that.” " He said.

Aldorty also criticized the theory that cryptocurrency code can evolve from security to non-security. He is convinced that this is just a made-up fallacy that has “no legal basis.”

The Securities and Exchange Commission has drawn heavy criticism from members of the cryptocurrency industry after it attempted to expand its jurisdiction by classifying crypto assets as securities.

The Ripple CLO asserted that the SEC's scope cannot expand based on its "selfish" view of who deserves more disclosure.

Although cryptocurrency tokens can be the subject of security transactions, they cannot be classified as securities, according to Alderotti.

The SEC's aggressive "regulation through enforcement" approach is widely expected to come to an abrupt end following the highly anticipated departure. SEC Chairman Gary Gensler. Paul Atkins, the candidate slated to replace Gensler, is likely to adopt a friendlier approach.

However, A Latest New York Post report It suggests that the SEC may not necessarily give the cryptocurrency industry a free pass next year.

Last month, Aldrote urge The next SEC Chairman will put an end to all instances of non-fraudulent cryptocurrencies and cooperate with Congress on clear rules for cryptocurrencies.