Ripple CLO Criticizes SEC’s Record Fines and Enforcement Actions
Ripple Chief Legal Officer Stuart Alderoty criticized the US Securities and Exchange Commission (SEC) following its announcement of financial remedies for fiscal year 2024.
SEC's Financial Performance
The SEC reported a record year, collecting $8.2 billion in fines and conducting 583 enforcement actions. Despite these figures, Alderoty expressed dissatisfaction with the SEC’s approach in its lawsuits.
Alderoty's Critique of SEC
Alderoty compared the SEC's announcement to a professor taking pride in unprecedented student failures. He suggested that instead of boasting about enforcement numbers, the SEC should focus on providing clarity and guidelines for the crypto sector rather than prioritizing punitive measures.
Critics, including investors, argue that the SEC’s aggressive tactics have harmed those it aims to protect. Some have labeled Chair Gary Gensler as potentially the least effective SEC Chairperson in history.
Ripple's Innovations Amid Regulatory Challenges
Despite regulatory tensions, Ripple is expanding its influence in fintech. The firm recently partnered with UK asset manager Abrdn and crypto exchange Archax to launch its first tokenized money market fund, XRPL.
Optimism around the XRP token is growing, with futures’ open interest exceeding $2.5 billion. Large-scale investors, referred to as "whales," have accumulated over 250 million XRP during price dips, fueling speculation of a potential rally to $20.
As of now, XRP trades at $1.33, reflecting a 10% decline in the last 24 hours.