Ripple's Legal Chief Forecasts Crypto Landscape in 2024 Amid SEC Lawsuit Resolution
Summary:
Stuart Alderoty, Ripple's Chief Legal Officer, provided his predictions for the cryptocurrency environment in 2024, including the possible resolution of Ripple's SEC lawsuit, judicial impact on crypto regulations, and potential legislative hurdles in Congress. He warned of the repercussions of the SEC's ongoing "regulation by enforcement" strategy on the crypto industry. Significant legal victories were in Ripple's favor in 2023, leading to major US exchanges relisting XRP and an 83% surge in its value. The case, however, is seen to have hindered Ripple's growth and acceptance in the U.S.
Stuart Alderoty, Ripple's Head of Legal, has provided his thoughts on what the cryptocurrency scene could look like in 2024. He touched on speculative outcomes of Ripple's ongoing legal battle with the Securities and Exchange Commission (SEC), the impact the judiciary could have on crypto laws, and potential legislative obstacles in Congress. Alderoty predicts that Ripple's lawsuit against the SEC will likely be resolved by 2024. He warns of the potential drawbacks of the SEC's continued "enforcement regulation" approach, which could pose a threat to significant actors in the crypto space. He suggest that the courts may play a key role in reigning in SEC overreach, hinting at potential escalation to a Supreme Court feud. In terms of legislation, Alderoty suspects that US lawmakers will agree on the need to regulate cryptocurrency but anticipates a stalemate on execution, potentially leaving American crypto businesses vulnerable while international counterparts make strides in legislative clarity and innovation. The SEC sued Ripple Labs and its present and former CEOs in 2020, alleging they conducted an unregistered initial public offering (IPO) of XRP to raise capital. The complaint states that Ripple accumulated funds through selling XRP tokens in unregistered securities offerings to both domestic and international investors. Ripple released a white paper in response, reaffirming its belief in the potential of Central Bank Digital Currencies (CBDCs). Nevertheless, in 2023, Ripple won significant legal battles against the SEC, establishing clearer regulations for XRP and having allegations of their CEO and co-founder violating securities law dismissed. These victories encouraged top US exchanges to relist XRP, leading to a significant 83% rise in the token's value so far this year. Crypto enthusiasts and analysts maintain that Ripple's legal issues with the SEC obstructed its progression and recognition in the US. John Deaton, an attorney supporting XRP, alleged that the court case was used as a weapon, emphasizing that evidence from the last three years backs this accusation. Although Ripple has been successful globally, he admits that the lawsuit hindered XRP's penetration into the US market.
Published At
12/16/2023 10:49:13 AM
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