Cramer slams crypto again and asserts that we know nothing about altcoins.
In a recent episode of CNBC Squawk Box shared on Thursday, Jim Cramer asserted that we know nothing about altcoins like Solana and XRP.
According to Cramer, the reason is that the government does not want to regulate these assets.
“I find the level of arrogance for people who think that crypto’s good shocking,” the CNBC Mad Money host said. “What do we know about Solana? What do we know about XRP? The answer is zero. The reason we know zero is because the government doesn’t feel it should be regulated.”
Unsurprisingly, Cramer’s statements have attracted a lot of backlash from the crypto community, as they see the claims as bogus.
Notably, Cramer’s claims also elicited a response from Attorney John E. Deaton, who represents XRP holders in the capacity of amicus curiae in the US Securities and Exchange Commission case against Ripple.
In response, Deaton highlighted that XRP is subject to US regulation and documented as a virtual currency in opposition to the Mad Money host’s claims. According to the lawyer, in 2015, the government forced Ripple to comply with several banking regulations, including the Bank Secrecy Act. Furthermore, he cites a 2019 report by the Financial Stability Oversight Council signed off by the current chair of the Federal Reserve, Jerome Powell, and the former SEC chair Jay Clayton among others, that labels XRP as a virtual currency.
“… we know A LOT about XRP, not nothing as you suggest,” Deaton surmised.
Notably, another user pointed out that if the public knows nothing about these digital assets, it is not due to a lack of regulation but because the media and analysts like Cramer have failed to educate them.
Cramer’s Ever-Changing Crypto Stance
It is worth noting that the Mad Money host has been inconsistent in his stance on crypto in the past few years.
As recently as April, the analyst had gushed about Ethereum and predicted an imminent rise to the $4,100 price point. We know now that did not happen. In June, Cramer asserted that there are fortunes to be made in crypto and urged investors to include it in their portfolio, albeit advising that they employ sound risk management.
However, a month later, the Mad Money host asserts there is no real value in crypto. Furthermore, he said the media should not report on crypto in August.
Notably, Cramer’s inconsistent stance and a streak of wrong market predictions have led many to question his ability as a financial analyst. It is so bad that a filing has been made for an actual Inverse Cramer ETF to allow investors to profit from betting against him.