Ripple CLO Defends Crypto, Exposes TradFi Money Laundering
- Ripple’s top lawyer has gone to war with U.S. regulators.
- Crypto has been scapegoated for money laundering as banks get a free pass.
- Big names have joined Ripple in slamming biased regulations.
Ripple’s top legal officer, Stuart Alderoty, isn’t holding back in his latest battle with U.S. regulators. As scrutiny on the cryptocurrency industry increases, Alderoty has taken a direct shot at authorities, accusing them of using crypto as a scapegoat for financial crimes while traditional banks remain unchecked.
His sharp comments follow a bombshell report. It revealed that the New York Federal Reserve allowed millions of dollars to slip through its oversight, fueling illegal activities abroad. This has sparked a fierce debate over who’s responsible for money laundering in the global financial system.
Ripple’s CLO Exposes NY Fed’s Role in Scandal
Alderoty didn’t hesitate to criticize a Wall Street Journal report exposing the New York Federal Reserve’s failure to prevent millions from reaching terrorist groups in Iran. Despite claims that cryptocurrency fuels money laundering, Alderoty pointed the finger back at the traditional banking sector.
Sponsored
His statement echoes growing frustration within the crypto industry. Many believe regulators like the SEC and the Federal Reserve are shifting the blame for bigger financial issues onto digital assets. Alderoty isn’t alone in this fight.
Prominent figures like John Deaton, a pro- XRP lawyer and GOP Senate candidate, and Anthony Scaramucci, former White House Communications Director, have joined him in slamming regulators .
Ripple CEO Slams US for Stifling Crypto
They argue that traditional banks, not cryptocurrencies, are the real culprits behind most money laundering today. Deaton backed his argument with data showing people are far less likely to use Bitcoin or other cryptocurrencies for illegal activities than conventional banking.
Major banks like HSBC, JPMorgan, and Bank of America have all faced massive money laundering scandals, overshadowing any wrongdoing in the crypto space. Ripple CEO Brad Garlinghouse joined the criticism, accusing the U.S. government of stifling the crypto industry through “regulation by enforcement.”
He contrasted the hostile regulatory stance in the U.S. with more welcoming environments abroad, where digital innovation is flourishing. As the regulatory fight rages on, Ripple’s native token, XRP, saw a modest 2.5% rise over the past 24 hours, trading at around $0.5328.
On the Flipside
- Traditional banks, such as HSBC and JPMorgan, have been involved in larger money laundering scandals, not cryptocurrencies.
- People are statistically less likely to use cryptocurrencies for illegal activities compared to conventional banking.
Why This Matters
Alderoty critiques the New York Federal Reserve’s role in illicit transactions, exposing regulatory hypocrisy by highlighting how authorities overlook traditional banks while scapegoating crypto. This could prompt calls for fairer oversight and reshape how financial crimes are addressed in both sectors.
To learn more about Ripple’s new stablecoin, RLUSD, and whether there are limitations on who can invest, read here:
Why Ripple’s RLUSD Stablecoin Could Be Off-Limits for Us Plebs
Curious to know why Ripple’s co-founder, Chris Larsen, is endorsing Kamala Harris for president? This article explores his motivations and the potential impact on Ripple:
Ripple Co-founder Backs Harris, Snubs Trump’s Deregulation Plan
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VNBTC Launches Free Cloud Mining Platform for Effortless Cryptocurrency Income
VNBTC, a leading cloud mining platform, has launched a new service that allows users to mine cryptocurrency without any initial investment, making crypto mining accessible to both beginners and experienced users. The platform eliminates the need for expensive hardware, technical expertise, and high electricity costs, as all operations are handled in the cloud, enabling users to start mining directly from their devices.

Voltage Finance Exploiter Resurfaces, Moves $182K in ETH to Tornado Cash After Months of Silence
After more than five months of inactivity, the hacker behind the 2022 Voltage Finance exploit has resurfaced—this time, moving a portion of the stolen Ether through Tornado Cash, a privacy-focused mixer.

BlackRock’s Bitcoin ETF Nears $5B in Inflows as BTC Eyes $97K Amid Bullish Momentum
Investor enthusiasm for BlackRock’s iShares Bitcoin Trust (IBIT) has shown no signs of slowing, with the spot Bitcoin ETF notching 16 consecutive days of inflows and edging closer to $5 billion in new capital. This surge in institutional interest coincided with Bitcoin’s brief spike to $97,500 during early trading on May 7, marking a return to resistance levels last seen on May 2.

Martin O’Malley Labels Bitcoin Potential Ponzi Scheme

Trending news
MoreCrypto prices
More








