Ripple Makes Critical Clarification and Warning About RLUSD Stablecoin

Ripple, the prominent blockchain company, recently shared an important update regarding the launch of its much-anticipated stablecoin, RLUSD. This stablecoin pegged 1:1 to the US dollar, is expected to be available on the XRP Ledger (XRPL) and the Ethereum network.

Ripple CEO, Brad Garlinghouse highlighted that RLUSD is intended to bridge the gap between traditional finance and the cryptocurrency market, with many experts anticipating that its release could positively influence XRP’s market value.

Ripple Makes Critical Clarification

Last week, Ripple minted over 800,000 RLUSD tokens on XRPL and Ethereum, comprising nearly all the token’s intended supply. This development sparked speculation across the crypto community, with some believing that RLUSD had already been launched.

However, Ripple clarified that RLUSD is still undergoing private beta testing. The company warned users to exercise caution and remain vigilant against false claims regarding the stablecoin’s status.

Ripple noted, “PSA: Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute #RLUSD. Keep an eye out for the latest updates, and stay vigilant against scams!”

Ripple’s warning was well received within the cryptocurrency community, especially on social media platforms such as X. The popular figure Vet commented on the post, stating “Unfortunately, a necessary PSA.

Even accounts with a gold checkmark are impersonating and scamming people. Stay vigilant, and the best thing is to do nothing, don’t click any links, and wait for official sources.”

Ongoing Disputes with the SEC

Despite the excitement surrounding RLUSD, Ripple has faced renewed scrutiny from the US Securities and Exchange Commission (SEC). The regulatory body has labeled RLUSD a “new unregistered crypto asset,” which could result in further legal challenges for Ripple.

This is not Ripple’s first conflict with the SEC. The two have been embroiled in a legal battle since December 2020, when the SEC filed a lawsuit against Ripple, accusing it of conducting an unregistered securities offering by selling XRP tokens.

The Ripple-SEC case saw a significant development in August 2024 when Judge Analisa Torres ruled that sales of XRP on secondary markets to retail investors did not violate securities laws.

While this was seen as a win for Ripple, the company was still ordered to pay $125 million in penalties for other securities law violations. The amount was considerably less than the $2 billion originally sought by the SEC, which some commentators viewed as a major victory for Ripple.

As of now, both Ripple and the SEC have until October 7 to file any appeals. Industry observers believe that the SEC is more likely to appeal the ruling, with legal experts such as American attorney Fred Rispoli estimating a 60% chance of the regulator pursuing an appeal.

Community Reaction and Impact on XRP

The launch of RLUSD has generated significant interest within the cryptocurrency space, and many believe it could influence XRP’s price in the future. The stablecoin’s ability to facilitate transactions on multiple blockchain networks—XRPL and Ethereum—has the potential to further solidify Ripple’s position in the evolving financial ecosystem. However, concerns over the SEC’s regulatory stance may impact its trajectory.

Ripple’s proactive warning to the community about the RLUSD’s current status, coupled with its reminder to wait for official sources, underscores the challenges the company faces not only from legal entities but also from malicious actors in the space. These factors will be critical to watch as the launch date approaches.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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