The U.S. Securities and Exchange Commission (SEC) is facing criticism for its use of the term 'crypto asset security,' which legal experts argue has no basis in law. The SEC's ambiguous stance on crypto transactions has drawn ire from Coinbase's chief legal officer and Ripple’s chief legal officer, Stuart Alderoty. Alderoty asserts that the term is fabricated and misleading. Additionally, a judge in the Kraken case has also questioned the SEC's undefined terminology. This controversy follows the SEC's recent actions, including dropping enforcement against Paxos and losing a motion to dismiss (MTD) against Binance in July. Critics also highlight the SEC's jurisdictional overreach and its assertion that bankruptcy assets may be considered 'crypto asset securities.'