In 2024, Ripple’s lawsuit with the SEC could resolve, impacting U.S. crypto regulations and industry innovation, according to Stuart Alderoty.

Recently, the company’s Chief Legal Officer, Stuart Alderoty, has offered a forward-looking perspective on the cryptocurrency landscape heading into 2024. His views shed light on the anticipated developments in Ripple’s ongoing legal tussle with the U.S. Securities and Exchange Commission (SEC) and the broader implications for crypto regulation in the United States.

Ripple vs. SEC: A Turning Point in 2024?

Alderoty anticipates a pivotal year in 2024 concerning Ripple’s lawsuit with the SEC. He suggests the potential for a resolution, but not without raising concerns over the SEC’s approach to crypto regulation, which he describes as “regulation by enforcement.” This strategy, according to Alderoty, could significantly impact the broader cryptocurrency industry, potentially stifling innovation.

The lawsuit, initiated by the SEC against Ripple Labs and its key executives in 2020, revolves around allegations that Ripple conducted an unregistered security offering through its sale of XRP tokens. The SEC’s stance is that these sales constituted a violation of securities law, primarily due to the nature of XRP tokens and their distribution.

Despite the ongoing legal saga, Ripple achieved a partial victory in 2023. A judge ruled in favor of Ripple Labs, determining that XRP tokens, specifically in the context of programmatic sales on digital asset exchanges, do not qualify as securities. This judgment marked a significant win for Ripple, subsequently leading to the relisting of XRP on major U.S. exchanges and an impressive surge in its value.

The Role of Judiciary and Legislation in Crypto Regulation

Alderoty predicts a crucial role for the judiciary in 2024, potentially involving the U.S. Supreme Court. He suggests that the court’s involvement could be decisive in curbing what he views as overreach by the SEC. This escalation could bring clarity to the broader regulatory framework governing cryptocurrencies.

Regarding legislative action, Alderoty foresees agreement among U.S. lawmakers on the necessity of crypto regulations. However, he anticipates challenges in implementing these regulations, potentially leading to a deadlock. Such a scenario could leave U.S. crypto firms at a disadvantage, especially as other nations progress in regulatory clarity and foster innovation in the digital asset space.

This regulatory uncertainty and the legal battle with the SEC have not been without consequences for Ripple. Critics, including pro-XRP attorney John Deaton, argue that these challenges have hindered Ripple’s growth and acceptance in the U.S. market. Despite Ripple’s success on a global scale, Deaton suggests that the ongoing lawsuit has adversely impacted XRP’s adoption in the United States.

The post Stuart Alderoty: 2024 Will Be a Crucial Year for XRP appeared first on Crypto Academy.

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Filed under: Bitcoin - @ December 17, 2023 4:16 pm