Crypto Won't Get Long-Awaited U.S. Rules in 2024, But the Courts May Steer Its Future

Even while the SEC may finally grant this boon, the agency and its cousin, the Commodity Futures Trading Commission (CFTC), are likely to continue their crypto enforcement agenda with high-profile cases. However, the biggest players, like Coinbase and Kraken, are already embroiled in the most relevant accusations, and those are now being worked out in court. That leaves the U.S. regulators in the same boat as the digital assets companies they’ve been targeting: Everybody is just waiting for the courts to decide who is more right. The longstanding dispute between the SEC and Ripple – which has largely gone against the agency – will probably reach an initial conclusion, at which point the SEC can appeal the earlier court ruling that it partially overreached in interpreting the so-called Howey test to label XRP a security. If the SEC appeals, the judiciary’s response to this fundamental legal fight could go on for many more months.