Ripple’s CLO Challenges the SEC’s Impact on Crypto Markets
In a recent social media post, Ripple’s Chief Legal Officer, Stuart Alderoty, has openly criticized the U.S. Securities and Exchange Commission (SEC) for stifling the crypto market. Alderoty highlighted how the SEC’s actions have artificially suppressed the growth and dynamism of digital assets. He remarked, “The only ‘efforts of others’ that truly moved crypto markets—by causing massive and prolonged artificial suppression—were those of the SEC.”
This isn’t the first time Alderoty has voiced such concerns. He previously condemned the SEC for touting its record fines, likening it to a professor celebrating a high failure rate among students. Such an approach, Alderoty argues, is not a testament to effective regulation but rather an indicator of systemic oversight failures driven by misguided incentives.
The SEC’s Aggressive Stance Under Scrutiny
Under the leadership of Gary Gensler, the SEC has been criticized for its stringent policies towards the cryptocurrency industry. The agency initiated legal proceedings against Ripple in December 2020, accusing the company of selling XRP without registering it as a security. This lawsuit was part of a broader crackdown on several digital asset companies, including major players like Coinbase Global and Binance Holdings.
Is There Light at the End of the Tunnel?
Market analysts are optimistic that the ongoing legal skirmishes between crypto firms and the SEC might either be dismissed or settled, especially with changes in the regulatory landscape. Chris Giancarlo, former Chair of the Commodity Futures Trading Commission (CFTC), has publicly advocated for dropping several high-profile cases, including Ripple’s. In an interview with Fox Business, Giancarlo expressed, “It’s time for regulatory agencies to drop a lot of these cases,” specifically mentioning the Ripple case as one that should be concluded.
The anticipation of changes in leadership at the SEC, with rumors of Gensler stepping down, has already contributed to a positive market sentiment. Digital assets previously labeled as “unregistered securities” by the SEC, such as Cardano (ADA) and Solana (SOL), have shown signs of price recovery. Remarkably, XRP has exited a prolonged accumulation phase lasting nearly three years. According to Arthur Azizov, CEO of crypto exchange B2BinPay, this phase’s duration often forecasts the strength of ensuing rallies. Since November 4, XRP’s price has surged by an impressive 404%, as reported by Forbes.
The evolving regulatory environment, coupled with XRP’s inherent potential, suggests that its price might surpass its previous all-time high by 2025, marking a significant milestone since its 2017 bull run.
XRP Poised to Reach New All-Time Highs
Comments from Ripple’s legal team come as XRP experiences a remarkable $100 billion surge, briefly positioning it as the third-largest cryptocurrency. On a recent Monday, XRP’s value skyrocketed by 20%, reaching a nearly seven-year high of $2.50, a level last seen in January 2018. Its market capitalization soared to $139 billion, a significant increase from under $30 billion just days earlier. The token continued its upward trajectory, climbing over 40% in a 24-hour period.
Amidst speculation about a potential U.S. Exchange-Traded Fund (ETF) for XRP, the cryptocurrency witnessed record inflows of $95 million. Notably, WisdomTree has officially filed an S-1 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.
