- According to Alderoty, Ripple and the SEC may reach a settlement in 2024.
- Ongoing legal disputes may lead to a showdown before the United States Supreme Court.
According to Stuart Alderoty, chief legal officer (CLO) of Ripple, the cryptocurrency market will look quite different in 2024. He spoke on the judicial branch’s impact on cryptocurrency regulation, possible legislative hurdles in the U.S Congress, and his forecasts about Ripple’s lawsuit with the U.S SEC.
According to Alderoty, Ripple and the SEC may reach a settlement in 2024. He warns that the crypto sector might be negatively affected by the SEC’s “regulation by enforcement” policy, which he says is ongoing.
Consensus Over Need for Crypto Rules
Ongoing legal disputes may lead to a showdown before the United States Supreme Court, according to Alderoty, who foresees a major role for the court in limiting SEC intrusion.
Moreover, Alderoty believes that politicians in the United States will reach a consensus over the need for crypto rules. U.S. crypto companies may be left exposed while other nations make strides in regulatory clarity and innovation due to his expectation of an implementation gridlock.
In 2020, Ripple Labs and its present and former chief executive officers were sued by the SEC. Executives were accused by the SEC of conducting an IPO for XRP, which the agency asserts was not yet a registered securities.
However, in July, Ripple won a court battle with the SEC when a judge sided with Ripple Labs and issued summary judgment, saying that XRP currency isn’t a security except for programmatic sales on digital asset exchanges.
Nevertheless, the SEC also had a win of its own when the federal court determined that XRP, when offered to institutional investors, qualifies as a security because it fulfilled the requirements of the Howey test.
Highlighted Crypto News Today:
Kazakhstan’s Digital Tenge Trial Success Spurs Upgrades in 2024
