Bad News for Ripple (XRP)? The SEC Slams The Company’s Most Recent Endeavor
TL;DR
- The SEC has criticized Ripple’s planned stablecoin, yet to be launched, as an “unregistered crypto asset,” continuing the longstanding conflict between the two.
- Due to the regulatory challenges in the US the company’s CEO Brad Garlinghouse remains focused on global expansion and establishing XRP’s role in the future financial infrastructure.
The SEC Fires Shots at Ripple… Again
Ripple’s upcoming stablecoin pegged to the American dollar has not yet seen the light of day, but that seems like no obstacle for the US Securities and Exchange Commission (SEC) to start criticizing it. Court documents shared by numerous X users show that the regulator describes the financial product as a “new unregistered crypto asset.”
Recall that 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. Most recently, though, the company’s chief technology officer, David Schwartz, disclosed that there will be some updates in June, such as “announcing the name.“
Those following the advancement of the cryptocurrency industry in the past few years must be aware that 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.
Last month, the lawsuit entered its trial phase with numerous developments, such as filing letters and motions. Earlier this week, the popular American lawyer Jeremy Hogan claimed that the spat has 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. Not long ago, 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.”
Subsequently, he 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.”
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