Ripple has recently made waves in the cryptocurrency industry with its announcement of the upcoming launch of a stablecoin named Ripple USD (RLUSD). This new stablecoin is set to be available on both the XRP Ledger (XRPL) and Ethereum platforms, with the aim of bridging the gap between the crypto world and traditional finance.
In a significant development, Ripple has initiated the minting of RLUSD tokens as part of a private beta testing phase. The on-chain data from XRP Scan revealed that 185 RLUSD tokens were minted, with a transaction fee of 0.000135 XRP. Ripple’s team has indicated that RLUSD will offer deep liquidity for major trading pairs on select centralized exchanges, allowing users to send the stablecoin globally in real-time with minimal fees and without the need for a bank account.
Some industry insiders, such as XRP enthusiast Cobb, speculate that the launch of RLUSD could have a positive impact on the price of Ripple’s native token, XRP. However, this move has also drawn the attention of regulatory authorities, most notably the US Securities and Exchange Commission (SEC). The SEC has previously raised concerns about Ripple’s stablecoin, labeling it as a “new unregistered crypto asset.”
The rift between Ripple and the SEC extends beyond the launch of RLUSD. In December 2020, the SEC filed a lawsuit against Ripple, accusing the company of selling XRP in an unregistered security offering. This legal battle has seen various developments, culminating in a recent ruling by Judge Torres ordering Ripple to pay a $125 million fine for violating securities laws. Despite this significant penalty, it represents only a fraction of the $2 billion initially demanded by the SEC.
The recent legal developments have been interpreted differently by industry stakeholders, with some viewing it as a victory for Ripple. Following the ruling, both Ripple and XRP’s price experienced a positive response. Nonetheless, both parties have until early October to appeal the decision, with the SEC’s stance remaining uncertain. As the controversy surrounding Ripple’s stablecoin launch and legal battle with the SEC continues to unfold, the future remains uncertain for the company and the broader cryptocurrency ecosystem.