The general counsel for Ripple Labs, Stu Alderoty, has hit back at a recent opinion piece by Gary Gensler, arguing that the SEC's crypto market shakedowns aren't protecting consumers.
The opinion piece published in Wall Street Journal (WSJ) raised concerns over how the SEC uses its power to regulate cryptocurrencies. He claims that instead of focusing on providing regulatory clarity for crypto traders and investors as they are supposed to do according to the push aside his fellow regulators.
The example he gave involved the recent "shocking" Blockfi shakedown by SEC, which led to its ending up on auction block and two other similar firms going belly-up in quick succession because of SEC. Stu said that consumers weren't protected and were left holding the bag.
The Gensler article "The SEC Treats Crypto Like the Rest of The Capital Markets" was met with intense backlash from many in the crypto space, which felt that the SEC is overstepping.
The SEC has been arguing with crypto companies for quite some time now. They believe they know best how to regulate this new and developing industry, but many community members don't agree because of their lazy approach thus far. Stu argues that they (SEC) haven't provided any clarity to crypto so far, but instead, they act like "on the beat cop" for crypto.
Stu claims the SEC chairman is pushing aside his fellow regulators and front-running President Biden's executive order, which asks for collaboration between the two groups.
On March 9, 2022 – the United States Government took a step in ensuring responsible development of digital assets by signing an executive order which charged both SEC and CFTC with coordinating efforts toward establishing regulatory frameworks for cryptocurrencies.
But according to Aldetory, the SEC didn't obey this directive. Instead, they have been playing turf war at the expense of over 40 million Americans in the crypto economy.
According to Gensler's article, these federal security laws were designed to protect investors, and there's no reason why we should treat crypto markets differently just because they use different technology.
But a lot of crypto enthusiasts have kicked against this. In fact, Forbes writer Roslyn Layton suggests that the SEC's decision to double its Crypto Assets and Cyber Unit staff and an enforcement-based regulation approach by the regulators are all pointing otherwise.
John Deaton, the United States Attorney, has made an astonishing claim. He said that Gensler and SEC are intentionally targeting cryptocurrencies with their new regulations, which oversteps what they can currently do to regulate crypto markets under current law – this could result in more lawsuits against these groups.
The bears successfully pulled Ripple (XRP) back below the moving averages, indicating that it may have been a bull trap. The bears are intensifying their selling and have attempted to pull the price of Ripple down towards the $0.30 support level.
The $0.30 support is likely to be heavily defended by buyers as it could start the next leg down in case the sellers win. They could then decline to $0.25 and, later, the pattern target of $0.21.
If the price rebounds off of $0.30 with strength, it will indicate strong demand at lower levels and may increase prices. The price is likely to move above the moving averages in an attempt by traders who believe that prices have been range-bound for too long. If they can pull it off, the pair could rally to the solid overhead resistance at $0.39.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)