Ripple’s Upcoming Stablecoin
CryptoPotato reports that Ripple is gearing up to launch a new stablecoin, Ripple USD (RLUSD), in 2024. The stablecoin will operate on the XRP Ledger and Ethereum, aiming to bridge the gap between traditional finance and the burgeoning crypto industry. Despite facing scrutiny from the United States Securities and Exchange Commission (SEC), Ripple is moving forward with its plans, though the exact launch date remains under wraps.
SEC’s Stance on RLUSD
The SEC has expressed concerns over the proposed stablecoin, deeming it an ‘unregistered crypto asset.’ Ripple’s legal battles with the SEC have been ongoing, with the core issue being the claim that Ripple’s sale of its XRP token constituted an unregistered securities offering. As the case progresses to trial, the SEC is pushing for a hefty $2 billion fine against Ripple. In contrast, Ripple argues for a maximum penalty of $10 million, citing the absence of direct fraud allegations.
Market Reaction and Analysis
Amidst legal turmoil, XRP’s market price has seen a downturn, currently trading at approximately $0.47. However, market analysts suggest that this dip may present a buying opportunity. The Relative Strength Index (RSI) for XRP stands at 42, indicating that the token is neither overbought nor oversold. Analyst Matthew Dixon had previously warned of a potential drop in XRP’s value due to rising inflation in the US. Yet, with inflation rates lower than anticipated and the Federal Reserve’s decision to maintain interest rates, XRP experienced a brief surge to nearly $0.50 before settling back down.
