Ripple executives accuse the Federal Reserve and SEC of being unfair to cryptocurrencies
As discussions about money laundering in cryptocurrencies and exchanges heat up, Ripple's legal director Stuart Alderoty recently strongly criticized the U.S. Federal Reserve and the U.S. Securities and Exchange Commission (SEC) for their unfair treatment of cryptocurrencies. In a post on X, Alderoty criticized traditional financial institutions, particularly the New York Fed, for being involved in illegal fund transfers. He pointed out that the problem of money laundering in the traditional financial system is the root cause, and cryptocurrency should not be a scapegoat.
Source: X Ripple’s Chief Legal Officer Stuart Alderoty recently strongly criticized the Federal Reserve and SEC for their unfair treatment of cryptocurrencies.
Alderoty's comments came in response to a report by The Wall Street Journal. The report mentioned that the New York Fed allowed hundreds of millions of dollars to flow into terrorist organizations in Iran due to insufficient anti-money laundering measures. Alderoty emphasized that cryptocurrencies are not the main driver of this type of illegal activity and pointed to serious flaws in the traditional banking system.
The traditional financial system is at the heart of the money laundering problem
Alderoty said blaming cryptocurrencies for money laundering problems is misleading. He mentioned that many traditional financial institutions are also involved in a large number of illegal fund transfer activities, but are not subject to the same strict supervision as cryptocurrencies. His stance has been echoed by many cryptocurrency supporters, especially leading figures within the $XRP community.
Republican Senate candidate and pro-$XRP attorney John Deaton also expressed support for Alderoty’s views. He pointed out that the proportion of Bitcoin and other cryptocurrencies involved in illegal transactions is much lower than that of traditional banks. Deaton more specifically named major global banks such as HSBC, JPMorgan and Wells Fargo, emphasizing that these financial giants are major players in global money laundering activities. According to the United Nations Office on Drugs and Crime, between $800 billion and $2 trillion is laundered through traditional financial systems every year, far exceeding cryptocurrency-related activity.
Ripple CEO Brad Garlinghouse also criticized the US government’s attitude in a recent interview with Bloomberg. He believes that the Biden administration’s strict regulatory policies on cryptocurrencies, led by the SEC, have caused harm to the industry. In contrast, other countries have adopted a more balanced regulatory framework, allowing the cryptocurrency industry to develop better.
Source: "Bloomberg" Ripple CEO Brad Garlinghouse criticizes U.S. attitude towards encryption
XRP market trend analysis
Despite regulatory pressure on the cryptocurrency industry, the price of $XRP has increased by 3% in the past 24 hours, trading at $0.5392. Behind this price increase was a significant increase in trading volume, indicating increased investor interest in the cryptocurrency. However, market analysts caution that this wave of price increases may not be sustainable. XRP currently faces a descending trendline with lateral resistance at $0.55, and a breakout and close above $0.56 could lead to a 15% rally to $0.65.
Chart source: TradingView $XRP price chart
In summary, Ripple General Counsel Stuart Alderoty’s strong attack on traditional financial institutions has reignited discussions about the double standards between the cryptocurrency industry and traditional banks. With the XRP market turbulent and regulatory pressure intertwined with market trends, the future development of the cryptocurrency industry remains full of uncertainty.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
