- Stuart Alderoty, Ripple's General Counsel, stated that the SEC is bullying the crypto market by filing unproven allegations as regulation.
- Alderoty voices support for the two bipartisan proposals seeking to define the line between securities and commodities in digital assets.
- Analysts note that bulls have disappeared, and the XRP price is at risk of collapse.
Ripple's General Counsel has criticized the SEC's tactics 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
Ripple General Counsel criticizes the SEC's allegations on crypto firms
Stuart Alderoty, the General Counsel of Ripple, condemned the SEC's practice of filing unproven allegations against crypto firms, and masquerading these as regulation. Alderoty outlined the urgent need for clearer crypto legislation.
Last week, a House Financial Services Subcommittee held an oversight hearing focused on the SEC's enforcement division. The regulator's case against Ripple has emerged as a forerunner to gaining clarity on the classification and regulation of cryptocurrencies.
Alderoty argues that the SEC has not provided regulatory clarity in crypto. The body opts to bully the market by filing or threatening to file enforcement cases; this could ruin the crypto industry and hurt the United States' position as the global leader in innovation.
The Ripple General Counsel was quoted as saying,
Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator. As a result, American innovation — and the jobs created — are fleeing the US.
The Counsel cited the ongoing battle between the SEC and Ripple as an example. Alderoty called upon lawmakers in Washington and said,
Two bipartisan proposals (the Digital Commodity Exchange Act and the Responsible Financial Innovation Act) that seek to define the line 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 pending legal clash between the SEC and Coinbase, analysts fear more volatility in the crypto market. Bloomberg's analysts concluded that the SEC has increasingly become aggressive in its enforcement methods.
Garlinghouse commented on the SEC's stance and argued:
I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is … I think they saw this gray area and they're like hey we are going to go in.
Brad Garlinghouse, CEO of payment giant Ripple, is bullish on a win and said,
I'm betting that because I think the facts are on our side. I'm betting that because the law is on our side.
Analysts fear further decline in XRP price
Analysts at FXStreet evaluated the XRP price trend and predicted a decline in the altcoin's price. Analysts argue that the power tussle between bulls and bears has given way, and bulls are in hiding. XRP price could therefore disappoint investors.
For price targets and more information on the XRP price trend, check this video: