Can SEC Create Problems For Ripple On RLUSD Launch? Bill Morgan Reacts
RLUSD was officially launched on global exchanges today. It combines the stability of legal currency with the efficiency of blockchain technology. Ripple describes RLUSD as an “enterprise-grade stablecoin built on trust, utility, and compliance.” RLUSD is backed by U.S. dollar deposits, U.S. government bonds and other cash equivalents and will be subject to third-party audits to ensure transparency. Ripple aims to create a stronger connection between fiat currencies and cryptocurrencies while enhancing cross-border payments.
Ripple President Monica Long emphasized the importance of the launch, saying: “The launch of RLUSD marks a new chapter for the XRP Ledger and Ripple’s use in our 70B+ payment process.”
Looming regulatory uncertainty
Tuesday’s release follows a period of uncertainty over the SEC’s stance on stablecoins. In April 2024, the SEC filed a remedy-related brief in the Ripple case, labeling RLUSD as issuing a new unregistered crypto asset.
Recently an X user pointed out that in April, the SEC flagged RLUSD for issuing a new unregistered crypto asset in its response brief related to the remediation action. “While NYDFS approval is one thing, can the SEC (Gensler) say Ripple failed to register?” he asked.
To this, Bill Morgan responded: “That’s right.” However, he added that the SEC has made many false statements about cryptocurrencies and that regulators have also made mistakes in this regard. Notably, this also includes the term “crypto-asset securities,” which the SEC lamented to the court.
But “Ripple doesn’t care”
“Ripple is not concerned about this statement,” he stressed. “If it was intended to be a warning or a threat, it has been ignored or addressed and frankly the market and anyone else don’t care because RLUSD is now regulated,” he commented.
The article raised doubts as to whether the SEC or outgoing chairman Gary Gensler could cause problems for Ripple on the RLUSD stablecoin. However, the SEC remained silent on NDFFS’s approval.
Ripple President Monica Long earlier addressed concerns about the impact of the RLUSD stablecoin on XRP. She clarified that Ripple USD and XRP will play different roles in the ecosystem. XRP serves as a bridge asset for cross-border transactions.
Notably, the launch of the stablecoin drove XRP prices up 12% today and 22% in a week. It is currently trading at $2.64, up more than 4% in the past day. With Gensler resigning on January 20, 2025, regulatory uncertainty surrounding Ripple remains high. However, investors remain optimistic, with incoming SEC Chairman Paul Atkins expected to end the era of SEC regulation through enforcement.
