The tensions between the crypto community and regulators continue to escalate. This time, the focus is on the U.S. Securities and Exchange Commission (SEC) and their stance towards Ripple’s new stablecoin RLUSD. The SEC recently labeled this stablecoin as an ‘unregistered crypto-asset’, a move that raises many questions within the Ripple community.
Bill Morgan, a prominent pro-XRP lawyer, has responded to an X-message where the issuance of RLUSD by the SEC is seen as controversial. Although Ripple’s stablecoin, RLUSD, received approval from the New York Department of Financial Services (NYDFS), the SEC seems unconvinced. In the ongoing lawsuit between Ripple and the SEC, RLUSD is cited as evidence that Ripple is selling crypto assets without proper registration.
Morgan responded calmly to the SEC’s claims: “That’s correct.” However, he emphasized that the SEC has missed the mark several times in the past with its statements about crypto, and would again miss the mark by labeling RLUSD. He added:
“Ripple doesn’t care about this statement. If it was meant as a warning or threat, it has been ignored or circumvented. Moreover, neither the market nor anyone else cares, because RLUSD is now regulated.”
Ripple’s president Monica Long has previously shed light on the potential impact of RLUSD on XRP. She emphasized that the two assets serve different purposes within the ecosystem: XRP as a bridge asset for cross-border transactions, and RLUSD to increase liquidity, stimulate usability, and expand the business. The applications of RLUSD range from cross-border payments to decentralized finance and real-world asset tokenization, with a launch planned on both XRP Ledger and Ethereum. The stablecoin will initially be available in America, Asia-Pacific, the UK, and the Middle East through various partnerships.
The announcement of the stablecoin has had an immediate effect on the market; the XRP price shot up by 12% today and over a period of a week by 22%, with the price now at $2.62 with a peak of $2.72. The trading volume exceeded expectations with nearly $19 billion, an increase of 172% in 24 hours. On the derivatives market, the total open interest of XRP futures has risen to $4.50 billion, with an increase of 19% in the same period, led by exchanges such as Bybit and Binance.
These developments show that, despite the regulatory challenges, the crypto market continues to respond to innovations and expansions within the Ripple ecosystem. It’s clear that the community is watching the progress of RLUSD closely, while waiting to see how the legal and market developments further unfold.
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