- The SEC has recently criticized Ripple’s yet-to-be-launched stablecoin, labeling it as an “unregistered crypto asset”.
- Ripple’s CEO, Brad Garlinghouse, remains committed to global expansion and establishing XRP’s role in the future financial infrastructure, despite regulatory challenges in the US.
The SEC criticizes Ripple’s planned stablecoin, escalating the ongoing conflict between the two entities. Ripple’s CEO, however, remains focused on global expansion and the role of XRP in future financial infrastructure.
The SEC Fires Shots at Ripple… Again
Ripple’s upcoming stablecoin, pegged to the American dollar, has not yet been launched. However, this hasn’t stopped the US Securities and Exchange Commission (SEC) from criticizing it. Court documents shared by numerous XRP users reveal that the regulator describes the financial product as a “new unregistered crypto asset”. Ripple revealed its intentions to introduce a stablecoin nearly a month ago, with CEO Brad Garlinghouse arguing it could serve as a bridge between traditional finance and the cryptocurrency sector. The exact launch date remains unclear, but the company’s chief technology officer, David Schwartz, disclosed that there will be some updates in June, such as “announcing the name”.
Ripple’s Ongoing Legal Battle with the SEC
This is not the first confrontation between America’s securities regulator and Ripple. The entities have been tied in a legal battle since December 2020, when the SEC accused the firm of illegally raising more than $1.3 billion by selling XRP in an unregistered security offering. The lawsuit entered its trial phase last month, with numerous developments, such as filing letters and motions. The spat has now moved to a stage with fewer actions where both sides must wait for the judge’s decision.
Ripple’s Additional Goals
Launching a stablecoin pegged to the value of the greenback is not the only thing on the company’s agenda for the next three years. CEO Garlinghouse named global expansion a top priority: “We are going to keep expanding even though the US market, partly from a regulatory point of view, has been slow to adopt. The non-US market has been really, really strong for us.” He also emphasized Ripple’s goal of dominating the new financial infrastructure, praising XRP’s possible role in the future monetary landscape. “We think that opportunity is huge, we think that’s going to be great for Ripple, we think it’s going to be great for XRP so I’m very very optimistic about that. I just think that the US needs to figure it out.”
Conclusion
The SEC’s criticism of Ripple’s planned stablecoin is the latest development in the ongoing conflict between the two entities. Despite these challenges, Ripple remains committed to its global expansion and the role of XRP in the future financial infrastructure. The outcome of the legal battle with the SEC could have significant implications for the company and the wider cryptocurrency sector.
