Stuart Alderoty, Ripple’s Chief Legal Officer, has urged the U.S. SEC to clarify crypto regulations and distinguish between securities and other tokens traded on secondary markets. He cited Judge Torres’ ruling in the Ripple case, which categorized XRP tokens traded on exchanges as not being securities. This decision aligns with the court’s finding that institutional sales of XRP constituted investment contracts, while subsequent trading on secondary markets is viewed as distinct from these initial agreements. Alderoty proposes a new framework to identify when tokens are no longer considered investment contracts based on issuer fulfillment of commitments and lack of enforceable rights for token holders. He suggests this framework could help differentiate between the initial sale promises and the secondary market’s activity, enabling clearer regulatory guidelines.