Stuart Alderoty, Ripple’s chief legal officer, believes the June 2024 flip will occur. Chevron USA Inc. Great Natural Resources Defense Council The U.S. Supreme Court’s ruling will likely have little impact on the Securities and Exchange Commission’s (SEC) strategy to pursue cryptocurrency compliance through enforcement.
In an interview with Cointelegraph’s Turner Wright, Alderoty emphasized that only a change in leadership will bring about a change in the SEC’s attitude.
“Under this leadership, I believe the SEC has done tremendous institutional damage to what was once a highly respected institution,” Ripple CLO said.
Alderoty also stated that the SEC’s ongoing litigation against the cryptocurrency industry, including the recent appeal of the Ripple lawsuit, is intentional and aimed at creating maximum confusion among industry participants.
“Under this leadership, this SEC doesn’t seem to care much about whether they are right or wrong in legal matters. Their goal, I think, is to launch massive enforcement actions that are currently being appealed. It will create a cloud of legal uncertainty over the industry.”
“I think eventually they will be proven wrong again. I don’t think they care about that.” Alderoty continued before describing the SEC’s aggressive stance on the cryptocurrency sector as “very disturbing.”
relevant: Overturned Chevron deference unlikely to affect cryptocurrency regulation: Tom Emmer
Roper Bright vs. Raimondo — Overturning 40 years of precedent
In the 1984 Chevron case, a precedent established 40 years later was overturned by the U.S. Supreme Court. Loper Bright Enterprises v. Raimondo The 1984 decision paved the way for courts to defer to regulators and their internal (often arbitrary) methods of enforcing policy.
The decision in Loper Bright v. Raimondo. source: US Supreme Court
For the nascent cryptocurrency industry, this meant startups faced enormous regulatory demands from multiple government regulators that hindered innovation and investment, especially from institutional companies.
In July 2024, Uniswap Labs cited Chevron’s overthrow as an argument for the SEC’s proposed expansion of what would legally qualify as an “exchange” under the Exchange Act of 1934. This is a regulatory change that places decentralized finance projects under the authority of the SEC.
magazine: Godzilla vs. Kong: The SEC is waging a fierce battle against the legal firepower of cryptocurrencies