Ripple recently announced its plans to introduce a stablecoin called Ripple USD (RLUSD) on the XRP Ledger and Ethereum. This move is aimed at bridging the gap between traditional finance and the world of cryptocurrencies. The stablecoin is expected to provide deep liquidity for major trading pairs on centralized exchanges, allowing users to transact globally in real-time, with minimal fees and no bank account necessary.
As part of a private beta testing, Ripple minted 185 RLUSD tokens earlier this week, with a transaction fee of 0.000135 XRP. This news has sparked excitement among some members of the crypto community, who see the launch of this stablecoin as a positive development for Ripple’s native token, XRP. However, the US Securities and Exchange Commission (SEC) has raised concerns about the launch, labeling RLUSD as a “new unregistered crypto asset.”
The launch of RLUSD is not the only source of contention between Ripple and the SEC. In December 2020, the Commission sued the company for allegedly selling XRP in an unregistered security offering. The lawsuit has seen significant developments over the past year, culminating in a recent ruling that required Ripple to pay a $125 million fine for violating securities laws. While this fine is a fraction of the initial $2 billion demand by the SEC, it has been viewed as a victory for Ripple by many in the industry.
Both Ripple and the SEC have until early October to appeal the ruling, with speculation rife about the next steps for both parties. While the SEC has not indicated whether it plans to appeal the ruling, the ongoing legal battle has cast a shadow of uncertainty over Ripple and its future plans. Despite this, the launch of RLUSD and the positive reaction of the crypto community signal that there is still optimism surrounding Ripple and its efforts to bridge the gap between traditional finance and the world of cryptocurrencies.
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