Key takeaways:
- Stuart Alderoty, the chief legal officer of Ripple, has offered predictions on the state of cryptocurrencies in 2024.
- Alderoty believes that the court will play a big part in limiting SEC abuse, and he even suggests that ongoing legal disputes may end up in the US Supreme Court.
Stuart Alderoty, the chief legal officer of Ripple, has offered predictions on the state of cryptocurrencies in 2024.
Alderoty talked about his projections regarding Ripple’s lawsuit against the US Securities and Exchange Commission (SEC), the court’s impact on cryptocurrency laws, and possible legislative challenges in the US Congress.
Alderoty notes the potential ramifications for the cryptocurrency business of the SEC’s ongoing “regulation by enforcement” approach and projects that Ripple’s litigation against the agency may be resolved in 2024.
Alderoty believes that the court will play a big part in limiting SEC abuse, and he even suggests that ongoing legal disputes may end up in the US Supreme Court.
Alderoty anticipates a consensus among US lawmakers on the necessity of crypto legislation. He does, however, anticipate a gridlock in the implementation process, which would expose US crypto companies to risk while other nations make strides in regulatory innovation and clarity.
In 2020, the SEC brought legal action against the CEOs of Ripple Labs, both past and present. According to the SEC, the executives hosted an XRP initial public offering despite the fact that the stock was unregistered at the time. In an unregistered securities offering, Ripple allegedly raised money by selling XRP tokens to investors in the United States and other countries.
But in July, a judge awarded summary judgment in favor of Ripple Labs, declaring that the XRP coin is not a security except with respect to programmatic sales on digital asset exchanges, giving Ripple a legal win over the SEC.
But the SEC also scored a win of its own when a federal judge determined that XRP qualifies as a security when offered to institutional investors because it satisfies the requirements of the Howey test. Since then, significant American exchanges have relisted XRP, which has caused the token’s value to soar 83% year over year.
