Ripple Exec Forecasts Crypto Landscape Shifts In 2024

Ripple chief legal officer Stuart Alderoty has provided insights into what the crypto sector might look like in the next year. He discussed predictions regarding Ripple’s lawsuit against the United States Securities and Exchange Commission (SEC), the court’s impact on cryptocurrency laws, and possible legislative challenges in the US Congress.

#2024Predictions — It’s that time of year again and we've asked leaders at Ripple to weigh in on what they think 2024 holds. 🔮

Our Chief Legal Officer @s_alderoty kicks us off with three bold outlooks on policy and U.S. crypto regulation for 2024. pic.twitter.com/7pcLmk2qPR

— Ripple (@Ripple) December 15, 2023

Alderoty anticipates a potential resolution to Ripple’s lawsuit with the regulator in 2024. However, he expressed concerns about the SEC’s persistent “regulation by enforcement” strategy, emphasizing its potential negative impacts on the crypto industry.

Alderoty believes that the court will play a significant role in preventing excessive actions by the SEC, and the ongoing legal conflicts may end up in the US Supreme Court. Just like it lost its case against Grayscale Investments, Alderoty forecasts that the agency will continue to lose major court issues.

Moreover, Ripple’s Chief Legal Officer predicts a challenging landscape on the legislative front. Alderoty argued that while US lawmakers may agree on the need for crypto regulations, he predicts a lack of consensus on the best course of action. He said this disagreement within the legislative body could leave US crypto companies uncertain about regulations while other countries advance in regulatory clarity.

Ripple Labs Vs. SEC

In December 2020, the SEC brought legal action against Ripple Labs and its current and previous CEOs. According to the SEC, the executives hosted an initial public offering of XRP despite the fact that the stock was unregistered at the time. In an unregistered offering, the company allegedly raised funds by selling XRP tokens in the US and worldwide.

However, in July, a judge awarded summary judgment in favor of Ripple Labs, ruling that the XRP token is not a security except with respect to programmatic sales on crypto asset exchanges, giving Ripple a legal win over the SEC. But the SEC also scored a win of its own when the federal judge ruled that XRP is a security when sold to institutional investors because it meets the requirements of the Howey test. Since then, major US exchanges have listed XRP, which has led to an impressive 83% YTD surge in the token’s value.

Crypto users say Ripple’s legal clash with the SEC hindered its acceptance and growth. John Deaton, a Pro-XRP attorney, said the lawsuit was designed to harm the XRP’s reputation in the United States.