Ripple’s Chief Legal Officer Accuses SEC of Artificially Suppressing Cryptocurrency Market
In a scathing criticism of the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer Stuart Alderoty has accused the regulatory body of engaging in actions that have artificially suppressed the cryptocurrency market.
Alderoty took to Twitter to express his frustration, stating, “Turns out, the only ‘efforts of others’ that truly moved crypto markets—by causing massive and prolonged artificial suppression—were those of the SEC.”
The SEC filed a lawsuit against Ripple in December 2020, alleging that the company violated securities laws by selling XRP without registering it as a security. This legal battle has had far-reaching consequences for the cryptocurrency market.
Under the leadership of Chair Gary Gensler, the SEC has intensified its scrutiny of digital asset companies, including high-profile cases against Coinbase Global and Binance Holdings. Gensler’s stance is that most tokens, apart from Bitcoin, should be classified as unregistered securities and fall under SEC jurisdiction.
Gensler’s impending departure in January has sparked optimism in the market, leading to a surge in XRP’s price. Other digital assets previously flagged as “unregistered securities” in SEC litigation, such as ADA and SOL, have also experienced a positive upturn in sentiment.
XRP Surges with Record Inflows
The allegations from Ripple’s legal officer coincide with a significant surge in XRP’s value, with a $100 billion increase in market capitalization.
XRP recently climbed to become the third-largest cryptocurrency after a remarkable $100 billion rally. The token experienced a 20% surge, reaching a nearly seven-year high of $2.50, last seen in January 2018. This surge propelled its market value to $139 billion, a substantial increase from less than $30 billion in early November.
As of the latest data from CoinMarketCap, XRP has risen by 19% in the past 24 hours, trading at $2.28 and holding the position as the fourth largest cryptocurrency with a market capitalization of $130.29 billion.
According to a recent report by CoinShares, XRP witnessed record inflows of $95 million, indicating growing interest in the cryptocurrency. This surge in demand could be attributed to the speculation surrounding the potential approval of a U.S. ETF for XRP.
On a positive note, WisdomTree has officially filed an S-1 with the SEC for an XRP spot ETF, joining other firms like Bitwise, 21Shares, and Canary in seeking approval for a fund that tracks the daily price movements of XRP.