Ripple CLO Stuart Alderoty criticized the US Federal Reserve and SEC for scapegoating crypto for money laundering, highlighting that traditional finance systems, including the NY Federal Reserve, have also facilitated illicit transfers.
On Tuesday, Stuart Alderoty, the chief legal officer (CLO) of Ripple Labs, conveyed apprehension regarding the US Federal Reserve and the U.S. SEC’s use of crypto as a scapegoat for money laundering.
Ripple CLO also noted that traditional finance systems, such as the New York Federal Reserve, have also been subjected to hundreds of millions of dollars in illicit transfers to terrorist organizations. The XRP community responds to Alderoty’s criticism of the Operation Choke Point 2.0 protagonists.
The Ripple CLO has stated that money laundering is a more extensive issue within the financial system.
Ripple CLO Stuart Alderoty addressed X on September 10 and decried the practice of some individuals using crypto as a scapegoat for money laundering issues.
He made these remarks in response to a Wall Street Journal report that the New York Fed lacked essential money-laundering safeguards, which led to illicit transfers that financed terrorist groups in Iran for years.
“Some say money laundering is a crypto problem. Not true. Just ask the NY Federal Reserve, which let hundreds of millions of dollars slip through.”
Stuart Alderoty criticized the U.S. Federal Reserve and the U.S. Securities and Exchange Commission (SEC) for attributing cryptocurrency to money laundering.
He has joined forces with John Deaton, a pro-XRP counsel, and Anthony Scaramucci, a former White House Communications Director, to condemn Senator Elizabeth Warren and SEC Chair Gary Gensler for their anti-crypto stance.
Also noteworthy, Warren has been criticized by crypto executives for his efforts to sever ties between the crypto industry and Wall Street. Operation Choke Point 2.0, which was implemented by US regulators last year, even implicated cryptocurrency in bank failures.
The XRP community, which includes “John Deaton concurs with Ripple CLO”
John Deaton, a Republican candidate for the Massachusetts Senate, provides statistics that demonstrate the significantly reduced use of Bitcoin and crypto for illicit transactions. In agreement with Ripple CLO Alderoty, he also stated that the major banks have facilitated the laundering of hundreds of millions of dollars.
It is important to note that the UN Office on Drugs and Crime estimates that between $800 billion and $2 trillion is laundered globally in a single year. He identified HSBC, JPMorgan, Bank of America, and Wells Fargo as the primary culprits, rather than cryptocurrencies.
Brad Garlinghouse, the CEO of Ripple, also observed that the United States has been antagonistic toward cryptocurrency.
The crypto industry has been adversely affected by the negative stance of the Biden administration. Rather than adopting the enforcement approach that other countries’ regulators have implemented, the US SEC has sued numerous companies in accordance with the regulation.
XRP Price Increases, Sudden Rally Is Unwarranted
The price of XRP has increased by nearly 3% in the past 24 hours, and it is currently trading at $0.539. The 24-hour low and high are $0.528 and $0.542, respectively. Additionally, the level of interest among traders has increased by 40% in the past 24 hours, as evidenced by the trading volume.
Nevertheless, it is possible that the price of XRP will never experience an abrupt increase. CoinGape’s analysis identified factors that could prevent an abrupt increase in the price of XRP, despite Ripple’s legal victory and recent developments with the XRP Ledger.
