Stuart Alderoty, the Chief Legal Officer at Ripple, has recently shared his perspectives on the evolving cryptocurrency landscape for 2024. His insights particularly focus on Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), the potential impact of judicial decisions on crypto regulations, and the challenges that might arise in the U.S. Congress regarding legislative measures.
Alderoty anticipates a potential resolution in 2024 of the lawsuit between Ripple and the SEC. He also warns of the SEC’s continued approach of “regulation by enforcement,” emphasizing the negative implications this could have on the broader cryptocurrency sector.
He foresees a crucial role for the judiciary in checking the SEC’s overreach, hinting that the escalating legal disputes may ultimately lead to a showdown in the U.S. Supreme Court.
Regarding regulatory developments, Alderoty expects consensus among U.S. legislators on the necessity of crypto regulations. However, he predicts challenges in the actual implementation, which might leave American crypto companies at a disadvantage as other nations progress in regulatory clarity and innovation.
The SEC initiated a lawsuit against Ripple Labs and its executives in 2020, alleging that they conducted an unregistered security offering through the sale of XRP tokens to investors in the U.S. and globally. In a significant legal development in July, Ripple achieved a victory when a judge ruled in favor of Ripple Labs, determining that XRP is not a security in the context of programmatic sales on digital asset exchanges.
Conversely, the SEC also secured a win, with the court ruling that XRP qualifies as a security when sold to institutional investors, meeting the criteria of the Howey test. Following this decision, major U.S. exchanges have relisted XRP, leading to an impressive 83% increase in its value since the beginning of the year.
Crypto enthusiasts and analysts argue that Ripple’s legal issues with the SEC have impeded its growth and acceptance in the U.S. John Deaton, a lawyer supporting XRP, contends that the lawsuit was used as a weapon, citing evidence from the past three years to back his claim. He believes that despite Ripple’s international success, the lawsuit has negatively impacted XRP’s adoption in the United States.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up