Ripple’s Chief Legal Officer, Stuart Alderoty, has shared insights on the future of the cryptocurrency landscape, specifically in 2024. He discussed predictions about Ripple’s legal dispute with the Securities and Exchange Commission (SEC), the judiciary’s influence on crypto regulations, and potential legislative challenges in Congress.
In his prediction, Alderoty foresees the possible resolution of Ripple’s SEC lawsuit in 2024. He cautions against the SEC’s persistent “regulation by enforcement” strategy, highlighting potential consequences for significant players in the crypto industry.
Alderoty predicts a significant role for the judiciary in curbing SEC overreach, suggesting that ongoing legal conflicts could escalate to a Supreme Court confrontation.
On the side of regulations, Alderoty envisions lawmakers on Capitol Hill agreeing on the need for crypto regulations. However, he expects a deadlock in implementation, which could leave U.S. crypto firms vulnerable while global counterparts advance in regulatory clarity and innovation.
The United States 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 (IPO) of XRP, which was an unregistered security at the time of raising capital. According to the complaint, Ripple raised funds by selling XRP tokens in unregistered security offerings to investors in the United States and worldwide.
Related: Ripple issues white paper on CBDCs, reiterates belief in their potential.
However, In 2023, Ripple experienced pivotal legal victories against the SEC, providing regulatory clarity for XRP as charges against Ripple’s CEO and co-founder related to alleged securities law violations were dropped. These legal successes prompted major U.S. exchanges to relist 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 U.S. 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 acknowledges that the case harmed XRP adoption in the U.S.
Magazine: Crypto Banter’s Ran Neuner says Ripple is ‘despicable,’ tips hat to ZachXBT: Hall of Flame