- Ripple faces another hurdle with the United States Securities and Exchange Commission (SEC) over its upcoming stablecoin.
- The SEC alleges that the stablecoin qualifies as an unregistered security offering, similar to its claims regarding Ripple’s XRP.
- Despite ongoing legal battles, Ripple’s CEO Brad Garlinghouse remains optimistic about the company’s future.
Ripple faces another legal challenge from the SEC over its upcoming stablecoin, amidst ongoing battles over the status of its XRP token.
Ripple’s Upcoming Stablecoin Faces SEC Scrutiny
Ripple’s announcement of a new stablecoin pegged to the US dollar has been met with resistance from the SEC. The regulatory body argues that the stablecoin qualifies as an unregistered security offering, similar to its claims regarding Ripple’s XRP token. Ripple’s CEO, Brad Garlinghouse, has stated that the stablecoin aims to combat de-pegging events that have cost crypto investors billions.
SEC’s Allegations Against Ripple
The SEC’s allegations against Ripple are rooted in the claim that Ripple has built its business on offering unregistered securities to investors. The regulator’s recent brief filed in the ongoing legal battle with Ripple states, “Ripple’s primary business continues to be, as it has been since 2013, unregistered sales of XRP. It also plans to issue a new unregistered crypto asset.” The SEC appears to be attempting to halt Ripple’s stablecoin launch, scheduled for late 2024.
Current State of Ripple’s Legal Battles
Despite the ongoing legal challenges, Ripple has secured several partial victories against the SEC. For instance, Judge Analisa Torres ruled that secondary programmatic sales did not qualify as a securities offering. However, the battle is far from over. The SEC is demanding a $2 billion fine for the alleged violations, while Ripple has countered with an offer of $10 million. Both parties are currently in the remedies stage of the lawsuit.
Conclusion
Ripple’s legal battles with the SEC continue to cast a shadow over the company’s operations. However, Ripple’s leadership remains optimistic about the future. As Ripple’s CLO Stuart Alderoty stated, “The good news is that we are closer than ever to putting this lawsuit behind us.” Only time will tell how these legal challenges will impact Ripple’s upcoming stablecoin and the broader crypto market.
