Ripple Labeled Ponzi as It Returns Fire Amid SEC Battle

Cryptocurrency community anxiously awaits outcome of Ripple-SEC legal battle amid rumors, confusion, and contrasting predictions.

Brad Garlinghouse in pyramid town.
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  • The Ripple-SEC legal battle has reached a critical juncture.
  • Swirling rumors and conflicting statements have created an atmosphere of uncertainty.
  • Ripple’s chief legal officer has challenged the SEC’s actions.

Cryptocurrency enthusiasts anxiously await the outcome of the legal battle between Ripple and the United States Securities and Exchange Commission (SEC). As the conclusion nears, rumors and pessimistic expectations abound, fueling confusion over the SEC’s leadership stance.

Ripple Faces Strong Opposition from Bitcoin Advocate Keiser

While Ripple’s community, supported by legal expert John E. Deaton, dismisses the rumors, prominent Bitcoin advocate Max Keiser believes the blockchain company will fail against the regulator. Keiser predicts the SEC will bring down Ripple’s alleged “Ponzi scheme.

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In response to the SEC’s actions, Ripple’s chief legal officer Stuart Alderoty calls out the agency, citing the US Electronic Code of Federal Regulations (e-CFR) on ethical standards for government personnel. Alderoty argues that SEC employees must act impartially and questions whether their actions align with this requirement.

Tensions Rise Between Alderoty and SEC Chiefs

Alderoty’s statement appears to target former SEC division director Bill Hinman. Ripple’s community, led by lawyer Jeremy Hogan, accuses Hinman of benefiting from his controversial 2018 speech claiming Ethereum (ETH) is not a security. They speculate that Hinman may have been paid to attack XRP. Alderoty may also be referring to SEC chief Gary Gensler.

Gensler has been critical of Ripple and XRP, leading Deaton to question why Congress has not issued subpoenas to address this matter. Deaton’s June 25 tweet stated, “Gensler refuses to release communications between SBFraud/FTX and the SEC.” 

The outcome of this legal battle is uncertain, and it holds significant implications for the future of digital assets. The cryptocurrency community, along with the wider financial sphere, eagerly awaits a resolution that will shape the landscape of this rapidly evolving industry.

On the Flipside

  • While Stuart Alderoty questions the SEC’s actions, his reference to the e-CFR may not be directly applicable to the specific circumstances of Ripple’s case.
  • The outcome of this legal battle remains uncertain, and until a verdict is reached, the implications for Ripple and the broader cryptocurrency market will continue to be debated and analyzed.
  • Max Keiser’s prediction of Ripple’s failure may be influenced by his strong advocacy for Bitcoin and his personal biases.

Why This Matters

The Ripple-SEC legal standoff has far-reaching consequences for the crypto industry as a whole. Its outcome will shape the regulatory landscape, impacting Ripple and XRP and how other cryptocurrencies are perceived and regulated.

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To learn more about Ripple’s CTO calling the legal battle against Coinbase a rollercoaster, read here:

Ripple CTO Calls Coinbase’s Legal Battle Against SEC a “Rollercoaster”

To stay updated on the growth of crypto exchanges signaled by rising stablecoin flow, read here:

Rising Stablecoin Flow Signals Growth on Crypto Exchanges

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.