SEC Accused Of Artificial Market Manipulation By Ripple’s CLO

• Ripple’s Chief Legal Officer, Stuart Alderoty, accuses the SEC of suppressing the crypto market.
• Hopes for a change in regulations caused XRP‘s value to soar by more than 400%.
• The ongoing legal dispute between Ripple and the SEC creates market uncertainty.

People have criticized the SEC for so long for its stance on Ripple. A new criticism was recently added, which has sparked another chit-chat and has become breaking Ripple news.

Stuart Alderoty, Ripple’s Chief Legal Officer, has criticized the SEC for its role in stifling the crypto market. He claimed that the SEC’s actions have led to a significant decline in cryptocurrency values, particularly XRP.

Turns out, the only ‘efforts of others’ that truly moved crypto markets—by causing massive and prolonged artificial suppression—were those of the SEC.

— Stuart Alderoty (@s_alderoty) December 2, 2024

He added that these actions have created artificial stagnation and uncertainty in the market. Alderoty highlighted that the SEC’s aggressive crypto regulation approach has suppressed the market for years.

He emphasized that natural factors did not drive the market’s issues but regulatory interference. Ripple’s ongoing legal clash with the SEC over XRP has become a central issue in the broader debate over UUScrypto regulation.

Recently, the XRP price experienced a remarkable surge of over 400%. That briefly ranked it as the third-largest cryptocurrency by market cap.

This rally is partly fueled by speculation about a potential shift in the SEC’s regulatory stance. Also, it could be influenced by the possibility of a settlement in the Ripple case under the Trump administration.

Crypto Industry United Against the SEC’s Previous Moves

Ripple’s legal conflict with the SEC began in December 2020. The regulatory body accused the San Francisco-based company of selling XRP without registering it as a security.

Ripple has consistently rejected these allegations. The firm asserted that XRP is a digital asset, similar to Bitcoin or Ethereum, rather than a security.

XRP’s legal defense has focused on the SEC’s inconsistent regulatory approach. Ripple claims the approach has harmed the crypto market.

Major crypto firms like Coinbase and Binance have also expressed frustration and accused the SEC of targeting them unfairly. Under Chair Gary Gensler, the agency has filed lawsuits against several digital asset companies, including Coinbase and Binance.

Former CFTC Chairman Chris Giancarlo has called for the SEC to reconsider its aggressive stance toward companies like Ripple. Despite the ongoing legal battles, Ripple’s executives believe that the SEC’s actions have harmed the industry.

They have urged the agency to adopt a more progressive approach before pursuing such claims. Ripple’s CLO argues that the SEC’s actions have destabilized the market and stifled innovation.

Bitcoin is classified as a commodity. However, under Gensler, the SEC asserted that most other digital assets are unregistered securities that fall under its jurisdiction.

Gensler’s impending departure in January has fueled optimism in the market. That contributed to the XRP price surge. Other digital assets previously labeled as “unregistered securities,” such as ADA and SOL, have also seen a rise in sentiment.

Is Ripple Capitalizing on the Surge in Positive Crypto Sentiment?

Ripple’s XRP has experienced a dramatic surge in market value. That has jumped from under $30 Billion to over $130 Billion.

Analysts attribute this impressive rise to the overall positive crypto market sentiment. With this, there is growing speculation that the SEC may be shifting its stance on cryptocurrency regulation.

XRP briefly claimed the third spot in terms of market value after a $100 Billion rally. The token soared by 20% to reach a near seven-year high of $2.50, a price last seen in January 2018. Currently priced at $2.68, XRP has gained over 40% in the last 24 hours.

Arthur Azizov, CEO of crypto exchange B2BinPay, noted that XRP had been in a prolonged accumulation phase. That often precedes significant market movements once it concludes.

“XRP was in an accumulation phase for nearly three years—around 900 days. The duration of such a phase often determines the strength of the subsequent rally, so it’s no surprise that from November 4, XRP has surged around 404%,” noted Arthur Azizov, the chief executive of crypto exchange and payment processor B2BinPay, as per a Forbes report.

The growth of XRP’s market was further fueled by the prospect of a US exchange-traded fund (ETF) focused on the token. Several financial firms, including WisdomTree, have already submitted applications to the SEC to approve XRP-based ETFs.

Amid this growing anticipation, XRP saw record inflows of $95 million, marking the highest level ever. It joins other major players like Bitwise, 21Shares, and Canary in the race. That signaled increasing investor interest and positioning XRP as a potential mainstream investment option.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.