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Ripple Introduces RLUSD to Connect Traditional Finance
- Ripple will launch its own stablecoin, Ripple USD (RLUSD), in 2024, available on both the XRP Ledger and Ethereum networks.
- In the Ripple v. SEC lawsuit, the SEC defended the proposed sanctions, citing a comparison to the Terraform Labs settlement.
As Ripple Inc. continues its legal battle with the U.S. Securities and Exchange Commission (SEC), it also continues to remain focused on the company’s other growth verticals. One of them is that Ripple is preparing to introduce its own native stablecoin Ripple USD (RLUSD) to the market. This new stablecoin will act as a bridge between the cryptocurrency industry and the traditional financial market Crypto news flash report.
Earlier this week, Ripple announced its new stablecoin, Ripple USD (ticker RLUSD), which will be available on both the XRP Ledger network and Ethereum. The launch is scheduled for 2024, although the exact date remains unknown.
Despite not yet being active, the stablecoin has already faced criticism from the US Securities and Exchange Commission (SEC), which labeled it an “unregistered cryptoasset.”
Please note that the launch of Ripple USD’s RLUSD stablecoin depends on the outcome of its legal battle with the SEC. According to market analysts, the final deal is likely to happen by the end of 2024.
Key developments in the Ripple v. SEC lawsuit
In its recent statement, the US SEC criticized Ripple for seeking a smaller fine “not to exceed $10 million,” as reported by Crypto News Flash. One of the main arguments put forward by Ripple was that there were no allegations of fraud against the company. Ripple also cited the recent Terraform Labs ruling, saying the $420 million civil penalty represented approximately 1.27% of its “$33 billion in gross sales.” In response to this, the SEC said this is not an apples-to-apples comparison.
The next day, in a June 14 letter to Judge Torres, the SEC defended its $4.5 billion settlement with Terraform Labs and its co-founder Do Kwon. The settlement, which includes a $420 million civil penalty, was justified by the company’s bankruptcy status, its agreement to return money to investors and the firing of leaders responsible for the violations.
The SEC said it calculated Terraform’s fine based on the “gross profit from the infringing conduct,” estimated at more than $3.5 billion, resulting in a penalty ratio of nearly 12%, according to the SEC. Crypto news flash report. The regulator said applying the same ratio to Ripple’s gross profits of $876.3 million, which it seeks to reject, would result in a civil penalty of $102.6 million. “Such a low penalty would not satisfy the purposes of the civil penalty rules,” the SEC said.
Interestingly, Stuart Alderoty, Ripple’s chief legal officer, saw the SEC’s request for a $102 million fine as a positive development compared to the previous request of $2 billion.
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Ripple CLO Stuart Alderoty welcomes the SEC’s move from a $2 billion demand to $102 million in the latest filing, calling it a relief amid the ongoing legal battle. Alderoty criticizes the SEC’s management, suggesting that it is unfairly targeting Ripple’s growth. The community eagerly awaits the final decision. #Ripple #SEC pic.twitter.com/JOEesK6il8
— Collin Brown (@CollinBrownXRP) June 17, 2024
XRP Price Action
Ripple’s native token has seen significant declines over the past week, and is currently trading at around $0.47. However, analysts like EGRAG CRYPTO on Twitter remain optimistic and consider the current price level a buying opportunity.
The trader highlighted the Relative Strength Index (RSI), which has hit lows in recent days. Currently, the RSI stands at 42, after dropping below 25 last week.