**Ripple's Legal Chief Criticizes SEC's "Crypto Asset Security" Term**

Ripple Labs' top lawyer, Stuart Alderoty, has slammed the SEC for repeatedly using the term "crypto asset security," calling it a made-up phrase with no legal basis. In an Aug. 30 filing, the SEC hinted at opposing FTX's plan to use stablecoins for creditor repayments, citing its portfolio of "crypto asset securities."

Alderoty argues that the SEC is trying to mislead judges with this term. A Federal Court in California also found the term "unclear at best and confusing at worst" in a recent case involving Kraken.

Alderoty also criticized the SEC's Wells notice to NFT marketplace OpenSea, comparing it to a 1976 ruling where the SEC decided art galleries didn't need to register as securities sellers, even if buyers had investment motives.