- Critics accuse the SEC of intentionally harming XRP retail investors.
- Key XRP developments were disrupted by the SEC’s strategically timed appeal.
- Calls for the SEC’s abolition grow as it’s seen as anti-innovation.
Critics are accusing the U.S. Securities and Exchange Commission (SEC) of intentionally harming retail investors with its recent decision to appeal the Ripple (XRP) case. According to some observers, the timing of the appeal was strategically designed to cause maximum damage, particularly as positive developments for XRP were unfolding.
SEC Appeals Ripple Case
In the 72 hours leading up to the SEC’s appeal, key events occurred, including the minting of RLUSD, a filing for an XRP-based ETF, and open interest in XRP surging to over $1 billion. Critics argue that the SEC’s decision was not coincidental but aimed at stalling XRP’s momentum, hurting investors who had positioned themselves for these developments.
This is not the first time the SEC’s actions have drawn scrutiny. In December 2020, just before the altcoin market saw a massive rise, the SEC filed its lawsuit against Ripple, alleging that XRP was an unregistered security. The lawsuit led to a $15 billion loss for retail investors and stifled growth at a critical moment.
Critic Expects Further Harm for Retail Investors
Critics say the SEC is acting against innovation and investors, rather than protecting them. Ripple paid $200 million in fines, and the legal battle caused losses in potential partnerships and expansion opportunities. Some are even calling for the SEC to be abolished, viewing it as an obstacle to progress and not a guardian of investor interests.
The ongoing controversy surrounding the SEC’s handling of the Ripple case highlights a growing divide between regulatory bodies and the cryptocurrency community, with calls for reform continuing to mount.
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