SEC v. Ripple Battle Follows, Counsel Says Regulator Bullies Crypto Market

by Arthur · July 28, 2022

Stuart Alderoty, Ripple’s General Counsel, stated that the SEC is bullying the crypto market by submitting unproven claims as regulation.
Alderoty expresses support for the two cross-party proposals that seek to define the boundary between securities and goods in digital assets.
Analysts note that bulls have disappeared, and the XRP price is in danger of collapsing.

Ripple’s General Counsel has criticized the SEC’s tactic 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

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Ripple General Counsel Criticizes SEC’s Claims Against Crypto Firms

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

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

Alderoty claims the SEC has not provided regulatory clarity in crypto. The body chooses to bully the market by filing or threatening to file enforcement cases; this could destroy the crypto industry and damage America’s position as a world leader in innovation.

Ripple General Counsel was quoted as saying:

Unsubstantiated claims masquerading as regulation are bad policy that harm consumers and markets whipped by the whims of an out-of-control regulator. As a result, American innovation—and the jobs that are created—are fleeing the United States.

The lawyer cited the ongoing battle between the SEC and Ripple as an example. Alderoty urged lawmakers in Washington, saying:

Two bipartite proposals (the Digital Commodity Exchange Act and the Responsible Financial Innovation Act) that seek to define the boundary 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 ongoing legal clash between the SEC and Coin base, analysts fear more volatility in the crypto market. Bloomberg’s analysts concluded that the SEC has become increasingly aggressive in its enforcement methods.

Commenting on the SEC’s stance, Garlinghouse argued:

I think the SEC has massively overreached and is trying to take some sort of jurisdictional ownership over something that is … I think they saw this gray area and they’re like hey we’re going to go in.

Brad Garlinghouse, CEO of payments giant Rippleis bullish on a win and said,

I’m betting on it because I think the facts are on our side. I bet on it because the law is on our side.

Analysts fear further decline in XRP price

Analysts at FXStreet evaluated XRP price trend and predicted a decline in the altcoin’s price. Analysts claim that the power struggle between bulls and bears has given way, and bulls are in hiding. The XRP price may therefore disappoint investors.

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