Ripple’s CLO Dismisses Cryptocurrency Money Laundering Fears, XRP Enthusiasts Fight Back
Ripple’s chief legal officer (CLO) Stuart Alderoty, raised concerns about the US Federal Reserve and the U.S. SEC scapegoating of cryptocurrencies for money laundering. He highlighted those traditional financial systems, including the NY Federal Reserve, have also experienced significant illicit transfers to terrorist groups. Alderoty’s statements garnered support from the XRP community and other prominent figures, including pro-XRP lawyer John Deaton and former White House Communications Director Anthony Scaramucci, who criticized Senator Elizabeth Warren and SEC Chair Gary Gensler for their anti-crypto stance.
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Alderoty emphasized that money laundering is a broader financial system issue, refuting claims that it is solely a crypto problem. He pointed out a recent WSJ report that revealed the New York Fed’s lack of key money-laundering safeguards, which led to illicit transfers financing terrorist groups in Iran for years.
XRP Community Backed Alderoty
Joining him in the criticism of US regulators, GOP Massachusetts Senate candidate John Deaton cited statistics showing that Bitcoin and crypto are far less used for illicit transactions compared to top banks, which have facilitated hundreds of millions of dollars in money laundering. Notably, the UN Office on Drugs and Crime estimated global money laundering to be between $800 billion-$2 trillion annually, largely implicating major banks like HSBC, JPMorgan, Bank of America, and Wells Fargo rather than cryptocurrencies.
Ripple CEO Brad Garlinghouse also expressed concerns about the hostile stance of the US government towards crypto, stating that the Biden administration’s negative view has adversely impacted the industry. Additionally, he criticized the US SEC for using a regulation through enforcement approach and highlighted the disparity between US regulators and their counterparts in other countries.
In the midst of these developments, the price of XRP surged by nearly 3% in the last 24 hours, reaching $0.539, with a notable 40% increase in trading volume. However, experts have cautioned against expecting sudden price spikes for XRP, citing factors such as Ripple’s legal victory and recent XRP Ledger developments as insufficient to warrant abrupt surges in price.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
