The top lawyer at Ripple, Stuart Alderoty, gave his thoughts on what cryptocurrency might look like in 2024. He discussed what might happen with Ripple’s legal situation with the United States Securities and Exchange Commission (SEC). He also spoke about how the courts can influence rules for cryptocurrencies and possible changes lawmakers in the U.S. Congress might make.
Alderoty foresees that Ripple’s legal battle with the SEC may end in 2024. He warns about the SEC’s recurring use of “regulation by enforcement” tactics. Alderoty brings to light the possible impacts this could have on the cryptocurrency sector.
Alderoty thinks courts will be key in limiting too much power from the SEC. He hints at growing legal battles that may reach the U.S. Supreme Court.
Regarding rules, Alderoty believes U.S. legislators will agree that crypto rules are necessary. Yet, he foresees a potential standstill in their execution. This could put U.S. crypto companies at risk as other nations progress in clear regulations and creative ways of using them.
In 2020, Ripple Labs and its present and past CEOs were sued by the SEC. The SEC claims that the heads of the company conducted an initial public offering of XRP.
The agency believes this was an unregistered security at that moment. The suit states that Ripple raised money from the sale of XRP tokens in non-registered security offers to investors in the United States and across the globe.
SEC vs. Ripple: A Tale Of Legal Victories & Market Surges
Yet, Ripple obtained a legal win against the SEC in July. A judge passed a summary judgment in favor of Ripple Labs. This judgment stated that the XRP token is not a security but only regarding programmatic sales on digital asset marketplaces.
Still, the SEC secured a win, too. A federal judge declared that XRP is a security when sold to big investors. This is because it passed the Howey test. After this, big U.S. exchanges put XRP back on their lists. This move ignited an amazing 83% increase in the token’s value this year.
Many in the crypto world believe Ripple’s lawsuit with the SEC stunted its growth in America. John Deaton, a strong supporter of XRP, insists the lawsuit was used against Ripple.
However, He cites past evidence backing this claim. Deaton reveals that even with Ripple’s worldwide success. This court case affected its acceptance in the United States.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
