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Ripple v. SEC: Here Is How Much SEC's Actions Cost Investors, According to CryptoLaw Founder

Tue, 08/30/2022 - 15:36
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Gamza Khanzadaev
Regulator's actions cost investors more in losses than those of crypto fraudsters, states lawyer
Ripple v. SEC: Here Is How Much SEC's Actions Cost Investors, According to CryptoLaw Founder
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Recently in the crypto space, an active discussion has been brewing about the $1 billion loss resulting from the actions of fraudsters. This discussion brought up the fact that despite the billion dollar loss, the actions of the U.S. Securities and Exchange Commission are much more damaging to investors in terms of dollar value.

Thus, John Deaton, a prominent pro-XRP activist and founder of CryptoLaw, made his next argument against the regulator, stating that the SEC's actions against XRP alone cost investors about $15 billion in losses. This figure, according to the lawyer, is all the money lost by XRP investors when the SEC, instead of limiting its charges to Ripple, decided to brand all XRP, including those sold on the secondary market, as securities.

Deaton's thesis is based on the fact that many major crypto exchanges, such as Coinbase and Kraken, immediately removed XRP from trading as a result of the SEC decision. In addition, the initiated investigation permanently puts pressure on the XRP price.

When Grayscale Spot Bitcoin ETF?

Ryan Selkis, founder of crypto analytics company Messari, also went on a tirade against the regulator. While Deaton's accusations against the SEC were related to the XRP case, Selkis pointed to the $7 billion lost by Grayscale investors due to the SEC's rejection of the Spot Bitcoin ETF.

At the time, as reported by U.Today, the commission, arguing its refusal to launch an instrument, stated that the ETF could be used for potential fraudulent actions and market manipulation.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.