Ripple CLO Accuses SEC of Being a Threat Amidst Confusion over Spot Bitcoin ETF
Major excitement swept through the cryptocurrency market when the Securities and Exchange Commission (SEC) announced the approval of a Spot Bitcoin ETF on their Twitter account. However, the jubilation was short-lived as SEC Chair Gary Gensler clarified that the tweet may have been unauthorized, triggering concerns of potential market manipulation. Ripple, along with others, is now urging the SEC to regain trust by prioritizing transparency and clear communication.
The day commenced with the SEC’s tweet, emanating from the ‘SEC’s X handle’, revealing the approval of the Spot Bitcoin ETF. This tweet had a profound impact not only on the XRP community but also on the broader crypto market.
In response to the confusion, Ripple’s leadership, including Chief Legal Officer Stuart Alderoty and XRP lawyer Bill Morgan, expressed their concerns on the X platform. Morgan highlighted the detrimental effects the SEC has had on crypto investors, particularly with the Ripple lawsuit, which caused significant losses in XRP’s value and resulted in massive liquidations. He emphasized the SEC’s negative impact on consumers in the crypto market.
Alderoty emphasized the importance of accountability and urged the regulatory body to disclose specific details about the incident within the stipulated four-day timeframe, as per the SEC’s own rules. He called for transparency regarding the nature and scope of the incident, its impact on the market, and a description of the SEC’s processes for assessing, identifying, and preventing cybersecurity threats.
Following the initial announcement, speculations about potential market manipulation began to circulate. Bloomberg ETF analyst Eric Balchunas even suggested the notion of a “scheduled tweet gone bad.” These events have raised concerns about the consistency and reliability of regulatory updates within the crypto sector.
While there have been indications pointing towards a hack, Balchunas maintains his initial theory that the tweet originated from within the SEC, suggesting a mishap with a scheduled tweet.
The confusion surrounding the SEC’s tweet underscores the necessity for clear and consistent communication from regulatory bodies. As the crypto community seeks clarification, the SEC faces scrutiny and inquiries regarding its credibility. Balchunas and others speculate that the SEC may be attempting to rectify the situation with the tweet.
In conclusion, Ripple and various stakeholders are pressing the SEC for transparency and effective communication to rebuild trust within the crypto space.