Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), has blamed the US Securities and Exchange Commission (SEC) for creating prolonged suppression of the crypto market. First, Alderoty’s remarks come after the SEC’s actions caused a big fall in cryptocurrencies’ value, especially XRP. He noted that the SEC locks the market and institutes artificial market stagnation and uncertainty.
Alderoty pointed out that the SEC’s hardline stance against crypto regulation had suppressed the market for years. However, he added, the markets did not face problems due to natural forces but regulatory ones.
Ripple’s ongoing legal battle with the SEC over XRP has long been a major flashpoint in the broader fight over crypto regulation in the U.S.
That’s when XRP has soared more than 400% in recent weeks and added plenty of market value. It then briefly became the third-largest cryptocurrency by market cap.
Part of the cause of this surge is speculation over a newfound shift in the SEC’s stance on regulation. Moreover, some have predicted a settlement in the Ripple case during the Trump administration.
Crypto Industry Pushes Back Against SEC’s Actions
Ripple’s legal battle with the SEC started in December 2020, when the SEC sued the company. Ripple has contested these charges repeatedly. Since the beginning, they have maintained that XRP is not a security but a digital asset, like Bitcoin or Ethereum.
XRP’s legal team has argued that the SEC’s inconsistent regulatory approach has been to its detriment. Crypto companies such as Coinbase Global Inc. and Binance Holdings have complained that the agency targets them specifically.
Chris Giancarlo, former Commodity Futures Trading Commission (CFTC) Chairman, and others argued that the SEC should hit rewind on its aggressive crypto attacks against companies like Ripple.
Ripple’s CLO says the SEC approach has eroded market stability and stifled innovation.
Ripple Benefits from Positive Crypto Sentiment
Ripple’s XRP has skyrocketed in market capitalization from below $30 Billion to over $130 Billion, becoming the fourth-largest cryptocurrency by market value.
Analysts say the surge is due to the positivity surrounding crypto in general and speculation that the SEC is changing its position on crypto.
According to Arthur Azizov, CEO of crypto exchange B2BinPay, XRP entered a long accumulation phase before this rally. Such phases generally result in more significant market movements when they end, he said.
The potential of a US exchange-traded fund (ETF) focused on XRP’s token also contributes to XRP’ market growth.
Several financial institutions, including WisdomTree, have filed applications with the SEC for XRP ETFs. This signals rising interest in the token, primarily since it is a potential mainstream investment vehicle.
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