The recent few months have been especially troublesome for the crypto market because of the increasing problems. The collapse of major names and fraud in the market led to stronger actions from the US financial watchdog, i.e., the Securities and Exchange Commission. It remained aggressive towards the crypto industry, leading to a crackdown on Kraken and Paxos which was criticized by Ripple executive.
The SEC has accused Kraken of selling unregistered investment contracts. The reason for it is the regular returns and payouts promised to the investors. The main question of the SEC was to know whether it was trading, lending, or borrowing. The increased questioning created problems that led to outrage from the industry. Ripple executive Stuart Alderoty criticized it, saying that most of US voters are in favor of crypto.
Here is a brief overview of Ripple’s executive’s statement about the recent steps that the SEC took against crypto giants.
Biden administration and steps against crypt giants
Biden administration has continued to face problems because of the growing economic trouble. Be it crypto or other domains; there has been an increasing stalemate. Though crypto made attempts to improve its value, there has been an increase in regulatory activity. As SEC took steps against Kraken and Paxos, it has led to increased political attacks. Ripple executive is of the view that the increased attacks would affect crypto while it will also have repercussions for the Biden administration.
Though there are crypto crackdowns are taking place in different regions, its supporters have come from different corners. Alderoty is of the view that there are more than 40 million people who hold crypto. According to the available information, most of these are between the age of 18 to 34, and this can impact the next election if the crackdown on crypto continues.
As the majority of these have the right to vote, it can play a decisive role in the next elections. If these votes vote against the Biden administration, it can have impacts on the Biden govt. as well the Democratic party. Additionally, investors are not happy with the current developments in the market. A survey conducted by NBC in the March of last showed that one in every five Americans has somehow experimented with crypto.
Ripple executive’s statement and political liability
As the new developments continued, a Ripple executive called Alderoty expressed the opinion of Gensler as a political liability. As he was announced by President Biden for this position, there is a chance that it will attract the wrath of those who feel wronged by the current administration. Crypto investors have faced a dire situation because of the recent crackdown of the SEC on Kraken.
As the new developments continue, SEC has asked Kraken to stop its staking program, which can worsen the matter in the coming days. In relation to the anti-crypto program of the SEC, Ripple is already in court against SEC for a couple of years. The crypto regulator has charged Ripple with the illegal sale of its XRP coins in the US. There have been allegations of bias against SEC head Gary Gensler.
As a result of the mentioned legal battle, there has been a considerable decline in the value of the XRP token. The mentioned token is currently trading at $0.37. As the market continues to fluctuate due to SEC’s actions, there is a chance that other crypto companies might also face problems.
Conclusion
Ripple executive Stuart Alderoty has slammed SEC for its anti-crypto stance. As the recent changes took place, there has been a crackdown against renowned names like Kraken and others. Alderoty said that there is a chance that it might have repercussions for the market because of the growing discontent amongst investors. As these investors feel enraged due to losses, there is a chance that their vote might go against the Biden administration.
