Stuart Alderoty predicts the possible resolution of Ripple’s SEC lawsuit and U.S. lawmakers agreeing on the need for crypto regulations.
News
Ripple chief legal officer Stuart Alderoty has shared insights on the future of the cryptocurrency landscape in 2024. He discussed predictions about Ripple’s legal dispute with the United States Securities and Exchange Commission (SEC), the judiciary’s influence on crypto regulations and potential legislative challenges in the U.S. Congress.
Alderoty predicts the possible resolution of Ripple’s lawsuit with the SEC in 2024, and he cautions against the SEC’s persistent “regulation by enforcement” strategy, highlighting its potential consequences for the crypto industry.
Alderoty predicts a significant role for the judiciary in curbing SEC overreach, suggesting that ongoing legal conflicts could escalate to a confrontation in the U.S. Supreme Court.
On regulations, Alderoty expects U.S. lawmakers to agree on the need for crypto regulations. However, he expects a deadlock in implementation, which could leave U.S. crypto firms vulnerable while other countries advance in regulatory clarity and innovation.
The SEC filed a lawsuit against Ripple Labs and its current and previous CEOs in 2020. The SEC alleged that the executives held an initial public offering of XRP (XRP), which it claims was an unregistered security at the time. According to the lawsuit, Ripple raised funds by selling XRP tokens in unregistered security offerings to investors in the U.S. and worldwide.
Related: Ripple issues white paper on CBDCs, reiterates belief in their potential.
However, in July, Ripple scored a legal victory against the SEC, as a judge granted summary judgment in favor of Ripple Labs, ruling that the XRP token is not a security but only in regard to programmatic sales on digital asset exchanges.
However, the SEC also managed to notch a victory of its own, as the federal judge ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey test. Major U.S. exchanges have since relisted XRP, sparking an impressive 83% year-to-date surge in the token’s value.
Crypto analysts and fans argue that Ripple’s legal clash with the SEC hindered its growth and acceptance in the United States. Pro-XRP attorney John Deaton asserted that the lawsuit was weaponized, stating that evidence from the past three years supports this claim. Despite Ripple’s global success, he says the case harmed XRP adoption in the United States.
Magazine: Crypto Banter’s Ran Neuner says Ripple is ‘despicable,’ tips hat to ZachXBT: Hall of Flame
