Ripple CLO Slams Crypto Money Laundering Concerns, XRP Community Reacts

Stuart Alderoty, chief legal officer (CLO) of Ripple Labs, on Tuesday expressed concerns over the US Federal Reserve and the U.S. SEC scapegoat crypto for money laundering. Ripple CLO pointed out that traditional finance systems, including the NY Federal Reserve, have also experienced hundreds of millions of dollars of illicit transfers to terrorist groups. XRP community reacts to Alderoty slamming the Operation Choke Point 2.0 protagonists.

Ripple CLO Says Money Laundering Is Broader Financial System Issue

Ripple CLO Stuart Alderoty took to X on September 10 and expressed concerns over some scapegoating crypto for money laundering problems. His comments came in response to a WSJ report that the New York Fed lacked key money-laundering safeguards and resulted in 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 slammed the U.S. Federal Reserve and the U.S. Securities and Exchange Commission (SEC) for blaming crypto for money laundering. He has joined others including pro-XRP lawyer John Deaton and former White House Communications Director Anthony Scaramucci to criticize Senator Elizabeth Warren and SEC Chair Gary Gensler for their anti-crypto stance.

Notably, crypto executives have also slammed Warren for efforts to break ties between Wall Street and the crypto industry. US regulators even scapegoated crypto for bank failures last year, known as Operation Choke Point 2.0.

XRP Community Including John Deaton Agrees With Ripple CLO

GOP Massachusetts Senate candidate John Deaton shares statistics on how Bitcoin and crypto are far less used for illicit transactions. Agreeing with Ripple CLO Alderoty, he added that top banks have facilitated hundreds of millions of dollars in money laundering.

Notably, the UN Office on Drugs and Crime estimates between $800 billion-$2 trillion is laundered globally in one year. He mentioned HSBC, JPMorgan, Bank of America, and Wells Fargo as the primary offenders rather than cryptocurrencies.

Ripple CEO Brad Garlinghouse also noted that the US has been hostile towards crypto. Biden administration has taken a negative view and it has impacted the crypto industry. The US SEC has sued many companies with the regulation through enforcement approach rather than doing what other countries’ regulators have done.

XRP Price Jumps But Sudden Rally Unwarranted

XRP price jumped nearly 3% in the past 24 hours, with the price currently trading at $0.539. The 24-hour low and high are $0.528 and $0.542, respectively. Furthermore, the trading volume has increased by 40% in the last 24 hours, indicating a rise in interest among traders.

However, XRP price may never see a sudden spike. An analysis by CoinGape pointed out reasons why XRP price may not jump suddenly despite Ripple’s legal victory and recent XRP Ledger developments.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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