Ripple finds itself in a unique position as it continues to engage in legal battles with the Securities and Exchange Commission (SEC). The ongoing SEC vs Ripple cases have taken a toll on the company, impeding its progress and hindering the growth of its cryptocurrency, XRP. To combat these challenges, Ripple had announced plans to introduce a stablecoin tied to the US dollar, aiming to rival major stablecoin issuers such as Tether and CENTRE. However, the SEC has now raised concerns about the stablecoin, claiming that it qualifies as an unregistered securities offering, much like XRP itself.
Despite Ripple’s intentions to address the volatility issues faced by stablecoin users, the SEC remains resolute in its belief that the company is involved in the unregistered sale of securities, a practice it supposedly engaged in for several years. Ripple has experienced some minor victories against the SEC throughout the four-year legal battle, but the end is still not in sight. The SEC reportedly demanded a $2 billion fine from Ripple, whereas the company has only offered $10 million in response. The SEC deems this amount insufficient given the alleged violations committed by Ripple.
In an interview with CNN, Ripple CEO Brad Garlinghouse hinted at the possibility of a stablecoin as an alternative to XRP amidst the SEC’s scrutiny. He expressed his belief that the SEC’s stance on cryptocurrencies is inconsistent, as it has labeled Bitcoin and Ether as not being securities while targeting other cryptocurrencies. However, it seems that the SEC shares a similar perspective on Ripple’s upcoming stablecoin, raising concerns even before its launch. The legal battle between Ripple and the SEC continues, leaving the company’s stablecoin plans in jeopardy.
