In a recent post on X, Stuart Alderoty, Chief Legal Officer of Ripple, has once again taken aim at the U.S. Securities and Exchange Commission (SEC). He accused the SEC of being responsible for significant and extended artificial suppression within the cryptocurrency market. Alderoty expressed his views succinctly: “Turns out, the only ‘efforts of others’ that truly moved crypto markets—by causing massive and prolonged artificial suppression—were those of the SEC.” This statement underscores his ongoing criticism of the regulatory body.
SEC’s Approach Under Scrutiny
Alderoty has previously criticized the SEC for its approach, comparing its record fines to a professor celebrating the highest failure rate in class history. He emphasized that such measures are not indicative of success but rather highlight a failure in oversight, motivated by skewed incentives. This sentiment echoes the broader criticism the SEC has faced under the leadership of Gary Gensler, particularly regarding its aggressive stance towards the cryptocurrency industry.
The SEC’s legal actions have not been limited to Ripple alone; the agency also targeted other digital asset companies, including major players like Coinbase Global and Binance Holdings. The lawsuit against Ripple, initiated in December 2020, accused the company of unlawfully selling XRP without registering it as a security.
Is There Light at the End of the Tunnel?
Market analysts and industry insiders are speculating that the ongoing legal battles between crypto companies and the SEC might be either dismissed or settled, potentially under a new administration. Chris Giancarlo, former Chairman of the Commodity Futures Trading Commission (CFTC), has publicly urged regulatory bodies to reconsider some of these cases, including that of Ripple. During a recent Fox Business interview, Giancarlo asserted, “It’s time for regulatory agencies to drop a lot of these cases.” When questioned specifically about the SEC’s case against Ripple, he confidently replied, “I think they should.”
Amidst speculation about Gary Gensler’s potential resignation in January, there has been a noticeable positive impact on XRP’s market performance. Cryptocurrencies previously labeled as “unregistered securities” by the SEC, such as ADA and SOL, are also experiencing a boost in market sentiment. According to Arthur Azizov, CEO of crypto exchange and payment processor B2BinPay, XRP’s accumulation phase lasted approximately 900 days, leading to its impressive rally of around 404% since November 4, as highlighted in a Forbes report.
This evolving regulatory landscape, coupled with XRP’s inherent potential, suggests that XRP could surpass its 2017 all-time high by 2025.
XRP Poised for All-Time High
Ripple’s recent developments coincide with a $100 billion surge in XRP’s market capitalization, propelling it to briefly become the third-largest cryptocurrency. On a recent Monday, XRP’s value skyrocketed by up to 20%, reaching a nearly seven-year peak of $2.50, a level last seen in January 2018. Its market cap soared to an impressive $139 billion, up from less than $30 billion on November 5. The token’s price continued its upward trend, hitting $2.68, marking over a 40% increase within 24 hours.
The anticipation surrounding a potential U.S. ETF for XRP has fueled significant inflows, with $95 million recorded, the highest to date. Furthermore, WisdomTree has officially submitted an S-1 filing with the SEC for an XRP spot ETF, joining other firms like Bitwise, 21Shares, and Canary in the competitive race to launch such financial products.
