Originally published on: October 16, 2024
Ripple’s chief legal officer, Stuart Alderoty, shared his insights on the recent overturn of the Chevron USA Inc. vs. Natural Resources Defense Council case by the United States Supreme Court. In an exclusive interview with Cointelegraph, Alderoty expressed his belief that this decision would unlikely affect the Securities and Exchange Commission’s (SEC) approach to enforcing compliance within the crypto industry.
According to Alderoty, the key factor that would lead to a shift in the SEC’s stance on crypto regulation would be a change in leadership. He criticized the current leadership for damaging the agency’s reputation and emphasized that the SEC’s aggressive pursuit of legal action against crypto companies, such as the ongoing Ripple lawsuit, was intentional to sow confusion among industry players.
The recent reversal of the 40-year-old Chevron precedent, which allowed courts to defer to regulatory agencies in policy enforcement, has raised concerns in the crypto community. This change could potentially lead to more stringent regulatory requirements for startups and hinder innovation and investment in the industry.
One notable example is the proposed expansion of the definition of an “exchange” under the Exchange Act of 1934 by the SEC, which could bring decentralized finance projects under its regulation. Uniswap Labs has already cited the Chevron overturn as a reason to oppose this regulatory change.
As the SEC continues its legal battles with the crypto sector, stakeholders are closely watching how regulatory decisions will impact the industry’s growth and development. Stay informed on the latest crypto laws and guidelines by subscribing to our Law Decoded newsletter for valuable insights every Monday.