Ripple CLO Stuart Alderoty Voices Strong Expectations That the SEC Will Adopt a More Legally Sound and Balanced Approach to Cryptocurrency Regulation in the Upcoming Year

His comments come at a pivotal moment, as Ripple's ongoing battle with the SEC nears a possible conclusion.

Ripple Technologies Inc.’s Chief Legal Officer Stuart Alderoty has high hopes that the U.S. Securities and Exchange Commission will adopt a more balanced and legally sound approach to cryptocurrency regulation in 2025.

This comes at a crucial juncture as Ripple’s XRP lawsuit nears a possible conclusion.

Alderoty maintains that the SEC should focus on traditional securities transactions and avoid expanding its authority into the crypto space without clear legal justification.

Highlighting a key principle, Alderoty argues that the SEC’s jurisdiction should be limited to securities transactions. This distinction is crucial to prevent the agency from overstepping its mandate and introducing uncertainty in the market.

To illustrate, he explains that selling a gold bar with additional rights could be a securities transaction, but selling the same gold bar without any post-sale obligations would only be an asset sale, which the SEC has no authority to regulate.

This is particularly relevant as the SEC has been closely examining digital assets like XRP to determine if they qualify as securities. Alderoty hopes the SEC will adopt a more objective approach to this issue, avoiding vague or subjective interpretations of disclosure requirements.

As the legal battle between the SEC and Ripple nears its resolution, the decision will profoundly impact the future of XRP and broader crypto regulation.

With Paul Atkins, a figure known for his pro-crypto stance, potentially becoming the SEC Chair under a new administration, there is optimism that his position could favor Ripple in the final stretch of the lawsuit.

If the SEC decides to abandon its appeal or if the agency’s enforcement strategy shifts, XRP could experience a significant price surge.

At the heart of the matter lies the question of whether XRP is a security. Alderoty believes the ongoing case will provide much-needed clarity on this front.

He points to Judge Torres’ prior rulings, which have already favored Ripple in several instances, and anticipates that the Second Circuit Court’s review may provide further legal backing for Ripple’s position.

One of the critical points Alderoty raises is the SEC’s previous claims about tokens evolving from securities to non-securities over time. He strongly rejects this notion as a “made-up fallacy” with no legal basis.

According to Alderoty, a token itself should not be classified as a security unless it is part of a securities transaction. This approach could bring the regulatory framework back to a more grounded legal interpretation.

The Ripple-SEC lawsuit is one of the most closely watched legal battles in the cryptocurrency space. The outcome could shape how the SEC handles other cryptocurrencies in the future.

Analysts suggest that if the SEC changes its enforcement stance or drops its appeal against Ripple, it could trigger a massive surge in the price of XRP, giving a strong signal to the broader crypto market that regulatory clarity is on the horizon.