Ripple Counsel Stuart Alderoty Takes Aim at the SEC Over Muddied Rules
- Investor angst over inflation and Fed monetary policy left XRP down 9.3% on Monday. News of DeFi lender Celsius suspending withdrawals also weighed.
- A court ruling on Hinman’s speech-related documents could materially influence the outcome of the SEC v Ripple case and XRP.
- Overnight, Ripple General Counsel Stuart Alderoty took aim at the SEC over the muddied regulatory environment.
The extended sell-off saw XRP fall through the First Major Support Level at $0.3333 and the Second Major Support Level at $0.3236 to test support at $0.30 before a partial recovery.
Market sentiment towards US inflation and Fed monetary policy continued to weigh on XRP. At the start of the week, news of DeFi lender Celsius suspending withdrawals added to the bearish mood.
Investor sentiment has overshadowed recent updates from the ongoing SEC v Ripple case. Things could change this week, however, with the markets awaiting a court ruling on the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.
With general counsel from both sides waiting on Judge Sarah Netburn’s ruling, Ripple General Counsel Stuart Alderoty took aim at the SEC.
Ripple General Counsel Alderoty Says Enough is Enough on Crypto Limbo
Overnight, Stuart Alderoty, General Counsel for Ripple, hit out at the SEC over William Hinman’s 2018 speech and the muddied regulatory landscape that followed.
Alderoty shared his comments on Twitter, saying,
“4 years since the (in)famous Hinman speech, and we’re nowhere closer to knowing how to classify digital assets in the US – keeping every crypto, including ETH, in regulatory limbo.”
He went on to say,
“I penned some thoughts for @Fortune why enough is enough, @SECGov.”
4 years since the (in)famous Hinman speech, and we’re nowhere closer on knowing how to classify digital assets in the US – keeping every crypto, including ETH, in regulatory limbo. I penned some thoughts for @Fortune why enough is enough, @SECGov. https://t.co/FB16cceaia
— Stuart Alderoty (@s_alderoty) June 13, 2022
Alderoty highlighted conflicts of interest in Hinman’s announcement that ETH is not a security. In 2018, when William Hinman delivered his speech, he did not state receiving millions of dollars from Simpson Thacher, his old law firm that remains a member of the Enterprise Ethereum Alliance (EEA).
“The EEA has an objective to drive the use of Enterprise Ethereum and Mainnet Ethereum blockchain technology.”
Alderoty also noted that,
“A securities commission can only regulate securities. Like a hammer wanting everything to be a nail, the SEC is keeping everything murky so it can argue every crypto is a security.”
Alderoty went on to say,
“The US is not the “Wild West” due to existing anti-fraud and anti-money laundering laws. Yet, without a comprehensive regulatory framework, the US will continue to fall further behind other responsible global economic centers. Recent bipartisan legislative efforts in Congress are promising.”
Ripple’s General Counsel referred to President Biden’s Executive Order on Responsible Development of Digital Assets.
Last week, the bipartisan Lummis and Gillibrand bill also brought hope of greater clarity on crypto regulations to support innovation and growth.
XRP Price Action
At the time of writing, XRP was down 3.25% to $0.3011.
A mixed start saw XRP rise to an early morning high of $0.3131 before sliding to a morning low and a new current-year low of $0.2998.
XRP found support at $0.30 to steer clear of the First Major Support Level at $0.2914.
XRP will need to move through the $0.3206 pivot to target the First Major Resistance Level at $0.3404. XRP would need the broader crypto market support to return to $0.32 levels.
In the event of a broad-based crypto rebound, XRP should test resistance at $0.35. The Second Major Resistance Level sits at $0.3698.
Failure to move through the pivot would bring the First Major Support Level at $0.2914 into play. Barring another extended sell-off, XRP should avoid sub-$0.28 and the Second Major Support Level at $0.2716.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.3661. Today, the 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA, XRP price negative.
A return to $0.35 levels would support a run at the 50-day EMA. Near-term, investor sentiment towards the Fed and news updates on the SEC v Ripple case will remain the key drivers.