Ripple Plans To Launch Stablecoin Amid SEC Controversy

According to CryptoPotato, Ripple, a prominent player in the cryptocurrency sector, has announced plans to launch a stablecoin, Ripple USD (RLUSD), on the XRP Ledger and Ethereum later this year. The stablecoin, pegged to the American dollar, is intended to serve as a bridge between traditional finance and the cryptocurrency sector. However, the United States Securities and Exchange Commission (SEC) has labeled RLUSD as an 'unregistered crypto asset,' continuing its ongoing legal dispute with Ripple. Earlier this year, Ripple made headlines when it revealed its intention to launch the stablecoin. Ripple's CEO, Brad Garlinghouse, stated that the financial product could act as a conduit between conventional finance and the cryptocurrency industry. Some crypto enthusiasts, including Alex Cobb, have suggested that the forthcoming product could trigger a potential price rally for Ripple's native token, XRP. Despite not being launched yet, RLUSD has already sparked controversy. The SEC, which has been in a legal battle with Ripple for years, has labeled it an 'unregistered crypto asset.' The SEC filed a lawsuit against Ripple in December 2020, accusing the company and some of its executives of illegally raising over $1.3 billion by selling XRP in an unregistered security offering. The case went to trial in April this year and has seen numerous developments since then. Ripple secured three partial court victories in 2023, leading to a significant price resurgence for XRP. In addition to the launch of RLUSD, Ripple has other plans for the next three years. Garlinghouse stated earlier this year that global expansion remains a priority for the company, despite regulatory challenges in the US market. He also highlighted Ripple's ambition to dominate future financial infrastructure, emphasizing the potential role of XRP in the monetary system.