SEC v. Ripple battle ensues, Counsel says regulator is bullying the crypto market


Share:
  • Stuart Alderoty, Ripple's General Counsel, stated that the SEC is bullying the crypto market by filing unproven allegations as regulation. 
  • Alderoty voices support for the two bipartisan proposals seeking to define the line between securities and commodities in digital assets. 
  • Analysts note that bulls have disappeared, and the XRP price is at risk of collapse. 

Ripple's General Counsel has criticized the SEC's tactics of regulatory clarity through rulemaking, arguing instead for an urgent need for crypto legislation  from lawmakers in Washington. 

Also read: SEC v. Ripple battle rages as regulation by enforcement continues

Ripple General Counsel criticizes the SEC's allegations on crypto firms

Stuart Alderoty, the General Counsel of Ripple, condemned the SEC's practice of filing unproven allegations against crypto firms, and masquerading these as regulation. Alderoty outlined the urgent need for clearer crypto legislation. 

Last week, a House Financial Services Subcommittee held an oversight hearing focused on the SEC's enforcement division. The regulator's case against Ripple has emerged as a forerunner to gaining clarity on the classification and regulation of cryptocurrencies. 

Alderoty argues that the SEC has not provided regulatory clarity in crypto. The body opts to bully the market by filing or threatening to file enforcement cases; this could ruin the crypto industry and hurt the United States' position as the global leader in innovation. 

The Ripple General Counsel was quoted as saying, 

Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator. As a result, American innovation — and the jobs created — are fleeing the US.

The Counsel cited the ongoing battle between the SEC and Ripple as an example. Alderoty called upon lawmakers in Washington and said, 

Two bipartisan proposals (the Digital Commodity Exchange Act and the Responsible Financial Innovation Act) that seek to define the line between securities and commodities in the digital asset space are a good start.

Bloomberg concluded that the SEC is becoming  increasingly aggressive 

In light of the pending legal clash between the SEC and Coinbase, analysts fear more volatility in the crypto market. Bloomberg's analysts concluded that the SEC has increasingly become aggressive in its enforcement methods. 

Garlinghouse commented on the SEC's stance and argued:

I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is … I think they saw this gray area and they're like hey we are going to go in.

Brad Garlinghouse, CEO of payment giant Ripple, is bullish on a win and said, 

I'm betting that because I think the facts are on our side. I'm betting that because the law is on our side.

Analysts fear further decline in XRP price

Analysts at FXStreet evaluated the XRP price trend and predicted a decline in the altcoin's price. Analysts argue that the power tussle between bulls and bears has given way, and bulls are in hiding. XRP price could therefore disappoint investors. 

For price targets and more information on the XRP price trend, check this video:

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Two key dates over the SEC request to freeze Binance assets

Two key dates over the SEC request to freeze Binance assets

Crypto exchange Binance must respond to the US Securities Exchange Commission’s (SEC) order to freeze assets tied to its subsidiary Binance.US by June 12, ahead of a court hearing about the case on June 13, according to the D.C. district court schedule.

More Cryptocurrencies News

Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals

Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals

The US Securities and Exchange Commission’s (SEC) crackdown on Coinbase led to  mass withdrawals of Coinbase wrapped staked Ether (cbETH) since Tuesday, acting as a bearish catalyst for the asset’s price.

More Ethereum News

Dogecoin Price Prediction: History suggests a potential 30% rally in DOGE

Dogecoin Price Prediction: History suggests a potential 30% rally in DOGE

Dogecoin (DOGE) price has been trading within a fixed range over the last six months, taking seasonal leaps as volatility increased. With this accumulation pattern, the king of meme coins could be en route to complete the next bounce cycle.

More Dogecoin News

Axie Infinity price recovery delayed despite investor deposits hitting a five-month high

Axie Infinity price recovery delayed despite investor deposits hitting a five-month high

Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the SEC, the investors have resorted to offloading their holdings for now.

More Axie Infinity News

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend. 

Read full analysis

BTC

ETH

XRP