Ripple and its native token, XRP, have been at the forefront of significant developments shaping the cryptocurrency landscape in late 2024. From Ripple’s Chief Legal Officer, Stuart Alderoty, criticizing the US Securities and Exchange Commission’s (SEC) regulatory tactics to XRP experiencing a historic rally fueled by political shifts and ecosystem advancements, the company and its token continue to capture the attention of investors and industry observers alike. Ripple’s Stuart Alderoty Condemns SEC’s “Lawless” Regulatory Tactics Amid Ongoing Appeals Ripple’s Chief Legal Officer, Stuart Alderoty, has once again launched a scathing critique of the US Securities and Exchange Commission (SEC), placing the spotlight on what he describes as the agency’s “lawless” approach to regulation. In a pointed tweet, Alderoty brought attention to the SEC's alleged misuse of its enforcement authority, accusing the agency of prioritizing its own agenda over adherence to the law. Alderoty’s remarks revisit themes from Ripple’s landmark legal battle against the SEC, a case that has become emblematic of the broader fight for regulatory clarity in the cryptocurrency sector. He noted that Ripple had made the crypto community aware of the SEC’s questionable tactics early in its litigation, prompting significant criticism of the agency’s methods. According to Alderoty, the court handling Ripple’s case observed the SEC’s habit of adopting litigation positions to achieve its desired objectives rather than demonstrating a commitment to faithfully interpreting and enforcing existing laws. Alderoty’s critique aligns with a growing wave of dissatisfaction among industry leaders and legal experts regarding the SEC’s regulatory framework. Critics have accused the agency of leveraging enforcement actions as a substitute for clear and consistent rulemaking. The SEC’s perceived lack of transparency has also fueled frustrations across the cryptocurrency ecosystem, with many industry stakeholders demanding actionable guidance rather than punitive measures. Ripple’s victory in its case against the SEC has further emboldened these calls, positioning the company as a leader in the fight for a more transparent regulatory landscape. Ripple’s ongoing battle with the SEC has already delivered a watershed moment for the cryptocurrency industry. In July 2023, the US District Court for the Southern District of New York ruled in Ripple’s favor, stating unequivocally that XRP is not a security. This decision dealt a significant blow to the SEC’s broader enforcement campaign, which has sought to classify various crypto assets as securities under its jurisdiction. The ruling provided Ripple and the wider crypto industry with a strong precedent as they continue to push for greater regulatory clarity. Despite the ruling, the legal battle is far from over. In October 2023, the SEC announced its intention to appeal the court’s decision, focusing on the classification of certain XRP distributions as securities. Ripple responded with a cross-appeal. As part of its preparation for potential remedies, Ripple has set aside $125 million in an escrow account. Prolonged Legal Timeline Both the SEC’s appeal and Ripple’s cross-appeal are expected to extend the case well into 2025. Briefings for the appeals are anticipated to last through the first half of the year, with arguments likely to occur in the fall. A final decision from the appellate court could follow shortly thereafter. This extended timeline has left industry participants eagerly watching for developments, as the case’s outcome could have far-reaching implications for the regulation of digital assets in the United States. Ripple’s case against the SEC has become a litmus test for the agency’s approach to crypto regulation. The ruling that XRP is not a security was celebrated as a victory for the broader industry, setting a legal precedent that many hope will curb the SEC’s aggressive enforcement actions. However, with the case now heading to appellate courts, the crypto industry remains on edge. The outcome could either cement Ripple’s win as a pivotal moment for regulatory clarity or breathe new life into the SEC’s efforts to assert its authority over the burgeoning digital asset market. As Ripple and the SEC prepare for the next phase of their legal showdown, Alderoty’s sharp critique brings attention to a critical issue at the heart of the debate: accountability. His comments are part of a broader demand from the cryptocurrency industry for a regulatory approach that prioritizes clear guidelines over litigation-driven enforcement. For now, Ripple continues to lead the charge for regulatory reform, and the stakes have never been higher. With billions of dollars and the future of crypto regulation on the line, all eyes are on the courts as this landmark case unfolds. XRP Surges Amid Political Tailwinds and Ecosystem Developments Meanwhile, XRP has captured the spotlight in late 2024, achieving its most significant rally in years, fueled by political developments, ecosystem upgrades, and growing adoption of its technology. The cryptocurrency reached a seven-year high of $2.90 on Dec. 3, 2024, before pulling back to $2.41, yet its momentum remains strong as attention shifts to what lies ahead in 2025. The rally marks a turning point for XRP, which had spent years in relative price stagnation. On Nov. 5, XRP began its sharp ascent, coinciding with Donald Trump's victory in the US presidential election. The President-elect’s pro-crypto stance has instilled confidence in the market, bolstering expectations for a regulatory environment conducive to innovation. Following the rally, XRP surged past Solana in market capitalization on Dec. 1, becoming the fourth-largest cryptocurrency. Data from CoinMarketCap reveals that XRP's market cap now stands at $138 billion, trailing only $2 billion behind stablecoin giant Tether’s $140 billion valuation. One of the most anticipated developments for XRP is the launch of Ripple's RLUSD stablecoin, recently approved by the New York Department of Financial Services (NYDFS) on Dec. 10. This dollar-pegged stablecoin is overcollateralized by fiat reserves and short-term cash equivalents like US Treasury bills, ensuring a 1:1 redemption ratio with US dollars. In addition to RLUSD, several other developments have contributed to XRP’s historic rally, cementing its position as a key player in the crypto space: 1. Pro-Crypto Political Tailwinds Donald Trump’s election victory in November 2024 ignited optimism across the crypto sector. Trump’s campaign featured pro-crypto rhetoric and promises of regulatory clarity, creating a friendlier climate for blockchain innovation. XRP, along with other digital assets, benefited significantly from this political shift. 2. Surge in Institutional Interest On Nov. 25, asset management giant WisdomTree filed for an XRP ETF, joining the ranks of Bitwise, Canary Capital, and 21Shares, which have also submitted applications to the SEC for similar products. The prospect of institutional-grade investment vehicles for XRP signals growing confidence in its utility and potential. 3. Market Cap Milestones By flipping Solana in market capitalization, XRP demonstrated its growing dominance in the cryptocurrency market. The achievement signals its broadening adoption and increasing relevance in the digital economy. 4. Regulatory Milestone for RLUSD The approval of RLUSD by the NYDFS represents a significant step forward for Ripple . With a secure regulatory foundation, RLUSD is poised to become a cornerstone of XRP’s ecosystem, driving adoption through remittances, decentralized finance (DeFi) applications, and cross-border payments. As XRP enters 2025, several factors are expected to sustain investor interest: Continued Adoption of RLUSD: The stablecoin’s integration into the XRP ecosystem is expected to drive transaction volumes, benefiting XRP holders through increased demand and token burn. Institutional Developments: The SEC’s eventual decision on pending XRP ETF applications could open the floodgates for institutional investment. Regulatory Clarity: With Trump’s administration expected to take a pro-crypto stance, Ripple and XRP could benefit from a more predictable regulatory environment. XRP’s historic rally in late 2024 suggests a perfect storm of favorable political developments, ecosystem advancements, and institutional interest. With the launch of RLUSD and the potential for greater adoption of the XRPL, the cryptocurrency is positioned for continued growth in the coming year. While challenges remain, including navigating regulatory uncertainty and maintaining momentum, XRP has emerged as a resilient contender in the cryptocurrency market, ready to capitalize on the opportunities that lie ahead.
