Amid rising concerns about money laundering in cryptocurrency and exchanges, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, is vocalizing his discontent. In a passionate post on X, Alderoty criticized the U.S. Federal Reserve and the Securities and Exchange Commission (SEC) for what he perceives as an unfair approach towards the crypto industry. He pointed out that traditional financial institutions, including the New York Fed, have also played a role in facilitating illicit transfers.
Alderoty argues that the true issue of money laundering is entrenched in the traditional financial system, and that cryptocurrencies should not be unfairly targeted.
Crypto Is Not the Main Culprit, Says Alderoty
Alderoty’s comments were in response to a Wall Street Journal report, which revealed that the New York Fed had permitted hundreds of millions of dollars to be transferred to terrorist groups in Iran due to insufficient money laundering safeguards. He refuted claims that cryptocurrencies are primarily responsible for such illegal activities, highlighting the inherent flaws within traditional banking systems.
Support from Pro-XRP Figures
John Deaton, a GOP Senate candidate and pro-XRP lawyer, supported Alderoty’s stance, noting that Bitcoin and other cryptocurrencies are far less involved in illicit transactions compared to major banks. He cited notable institutions such as HSBC, JPMorgan, and Wells Fargo as major offenders in global money laundering activities, with the United Nations estimating that between $800 billion and $2 trillion is laundered annually through traditional financial channels.
Ripple CEO Brad Garlinghouse also chimed in, criticizing the U.S. government’s negative stance toward cryptocurrencies. He pointed out that the Biden administration’s regulatory approach, primarily driven by the SEC, has negatively impacted the crypto industry, while other countries have adopted more balanced regulations.
XRP Market Analysis
Despite these ongoing tensions, XRP’s price experienced a 3% increase in the past 24 hours, trading at $0.539. The surge in trading volume indicated a heightened interest from traders. However, analysts caution that this price jump might not be sustainable. XRP faces significant resistance from a descending trendline and a horizontal level at $0.55.
If XRP manages to break through these barriers and closes a daily candle above $0.56, it could potentially rally by 15% to reach $0.65. As of now, XRP is trading at $0.538, marking a 2.5% increase over the last 24 hours. The trading volume has surged by 65%, reflecting increased interest from crypto enthusiasts as the market shows signs of recovery.
Are the Fed’s Allegations Justified?
The ongoing debate about whether the Fed’s allegations against cryptocurrencies are justified continues to create ripples across the financial world. As traditional financial institutions are increasingly scrutinized for their role in facilitating illicit activities, the question remains: Should the blame be placed primarily on the burgeoning crypto industry?
Let us know your thoughts on this issue. Do you believe the crypto industry is being unfairly targeted, or are these regulatory measures necessary to curb illegal activities?
