Ripple has recently announced its plans to launch a stablecoin named Ripple USD (RLUSD) in 2024, with the coin being available on the XRP Ledger and Ethereum. This move by Ripple is seen as an attempt to bridge the gap between traditional finance and the crypto industry. However, the launch of RLUSD has already faced criticism from the United States Securities and Exchange Commission (SEC), who has labeled it as an “unregistered crypto asset.”
The SEC and Ripple have been embroiled in legal battles for years, with the most recent lawsuit centering on allegations that Ripple conducted an unregistered securities offering by selling its XRP token. The case has now entered the trial phase, with the SEC seeking a $2 billion fine on Ripple, while the company argues that the penalty should not exceed $10 million. One of Ripple’s main defenses is the absence of direct allegations of fraud in the case.
The native token of Ripple, XRP, has experienced a significant drop in price, currently trading at around $0.47. Despite this decline, some analysts, such as EGRAG CRYPTO, view the current price level as a buying opportunity. The Relative Strength Index (RSI) for XRP has reached low points recently, standing at 42, which could indicate a potential upward price movement in the future. This contrasts with previous predictions that XRP’s price would decrease in the face of rising inflation in the United States.
Ripple’s plans to launch a stablecoin have been met with criticism from the SEC, adding further complexity to the legal battles between the two entities. Meanwhile, XRP’s price movement continues to be volatile, with some analysts seeing the current price level as an opportunity for investment. The future of Ripple, its stablecoin, and XRP’s price trajectory remain uncertain amidst regulatory challenges and market dynamics.
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