RLUSD went officially live today on global exchanges, which combines the stability of fiat with the efficiency of blockchain technology. Ripple has described RLUSD as an ‘enterprise-grade stablecoin built on trust, utility, and compliance.’ Backed by US dollar deposits, US government bonds, and other cash equivalents, RLUSD will undergo third-party audits to ensure transparency. Ripple aims to build stronger ties between fiat and crypto while enhancing cross-border payments.
Ripple President Monica Long highlighted the significance of the launch, stating, “The release of RLUSD marks a new chapter, both for the XRP Ledger as well as Ripple for use in our $70B+ payments flows.”
Looming Regulatory Uncertainty
The Tuesday’s launch follows a period of uncertainty surrounding the SEC’s take on the stablecoin. In April 2024, the SEC filed its remedies-related reply brief in the Ripple case, labeling RLUSD an issuance of a new unregistered crypto asset.
A recent X user pointed out that in April, the SEC labeled RLUSD the issuance of a new unregistered crypto asset in its remedies-related reply brief. “While the NYDFS approval is one thing, but could the SEC (Gensler) say Ripple failed to register it?” he questioned.
To this, Bill Morgan reacted “That is correct.” However, he added that the SEC made many incorrect statements about crypto and the regulator was wrong here too. Notably, this also includes the term ‘crypto asset securities’ for which the SEC expressed regrets to the court.
But “Ripple Does Not Care”
“Ripple does not care about the statement,” he underscored. “If it was meant to be a warning or a threat, it has been disregarded or worked around, and quite frankly, neither the market nor anybody else cares because RLUSD is now regulated,” he remarked.
The post raises doubts on whether the SEC or outgoing Chair Gary Gensler can cause problems for Ripple on RLUSD stablecoin. However, the SEC has remained silent on the approval from the NFDFS.
Ripple President Monica Long earlier addressed concerns about RLUSD stablecoin impacting XRP. she clarified that the Ripple USD and XRP will serve different purposes within the ecosystem. XRP is used as a bridge asset for cross-border transactions.
Notably, the stablecoin launch fueled the XRP price to surge 12% today and 22% in a week. It is currently trading at $2.64, up over 4% in the past day. With Gensler stepping down on January 20, 2025, regulatory uncertainty surrounding Ripple remains elevated. However, investors remain optimistic, expecting incoming SEC Chair Paul Atkins to end the SEC’s era of regulation through enforcement.
