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Securities,
Government

Sep. 4, 2024

SEC's 'crypto asset securities' claim against FTX raises doubts

Addressing the SEC's filing in bankruptcy court in Delaware, Ripple Labs' chief legal officer, Stuart Alderoty, said the agency needs to stop trying to deceive judges" by representing FTX's digital assets as "crypto asset securities," writing on social media site X that the term was "nowhere to be found in any statute." 

The U.S. Securities and Exchange Commission's use of the term "crypto asset securities" when describing the now-shuttered cryptocurrency firm FTX's bankruptcy proposal has no statutory basis and deliberately misleads courts, digital asset firm Ripple Labs' head of legal posted on social media. 

Others in the field agreed that the SEC was overreaching or taking advantage of a lack of clarity in the law to take a position that would be difficult to defend in co...

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