Ripple Exec Criticizes US Regulators for Targeting Crypto

Stuart Alderoty, Ripple Labs' Chief Legal Officer, voiced strong criticism on September 10 regarding US regulators' tendency to blame cryptocurrencies for money laundering issues.

Alderoty highlighted that traditional financial institutions, including the New York Federal Reserve, have also been involved in substantial illicit transfers, including funding terrorism. He argued that attributing money laundering problems solely to crypto is misguided.

Alderoty’s comments came in response to a recent WSJ report revealing that the New York Fed had inadequate safeguards against money laundering, leading to billions of dollars being illicitly transferred to terrorist groups over several years. He emphasized that the problem is systemic and not confined to the crypto industry.

Joining Alderoty in his critique are pro-XRP lawyer John Deaton and former White House Communications Director Anthony Scaramucci, who have also criticized Senator Elizabeth Warren and SEC Chair Gary Gensler for their negative stance on cryptocurrencies.

These critics argue that major banks have played a larger role in money laundering compared to crypto.

According to the UN Office on Drugs and Crime, between $800 billion and $2 trillion is laundered globally each year, with major banks like HSBC and JPMorgan being significant contributors. Ripple CEO Brad Garlinghouse added that the US government’s hostility towards crypto has negatively affected the industry.