XRP News Today: Ripple’s New Stablecoin Launch Could Crush SEC Lawsuit—Here’s How!

The post XRP News Today: Ripple’s New Stablecoin Launch Could Crush SEC Lawsuit—Here’s How! appeared first on Coinpedia Fintech News

Ripple’s recent launch of a dedicated website for its RLUSD stablecoin has ignited speculation within the XRP community regarding the possible conclusion of the ongoing lawsuit with the SEC. While some XRP enthusiasts view this development as a sign that Ripple’s legal battles might soon end, legal experts advise caution, suggesting that the company could face new scrutiny. 

Potential for New Lawsuit

The RLUSD stablecoin, expected to launch later this year, could attract further legal challenges. Crypto lawyer Fred Rispoli, a known XRP supporter, commented that any issues related to the RLUSD stablecoin would likely be addressed in a separate lawsuit rather than being connected to the Ripple vs SEC case. Despite Ripple’s progress with the stablecoin, the potential for additional regulatory scrutiny remains a concern.

Ripple’s Compliance-First Strategy

However, taking lessons from the SEC’s manipulative regulatory strategies, the company has launched the Ripple platform with a compliance-first mindset, in discussion with relevant regulators, and will continue to play by the book. They are also launching any of their products with a compliance-first mindset.

Ripple has introduced stablecoins as an alternative or addition to XRP, which in some use cases, works better. Ripple’s primary goal is to reduce financial friction for people, with businesses as their main customers.

Impact of U.S. Elections on Ripple’s Legal Troubles

The possibility of a new lawsuit will end if a pro-crypto administration takes office following the November elections. Presidential candidate Donald Trump has expressed a supportive stance toward cryptocurrencies, which could influence regulatory approaches. Plus, former SEC attorney Marc Fagel believes that a shift in the political system might lead to a more favorable environment for crypto firms like Ripple. 

Ruling Timeline and Settlement Speculations

Moreover, Former Ripple director Sean McBride has suggested that there is a 50/50 chance Judge Torres could rule on the case in August. This has fueled speculation, especially since Ripple CEO Brad Garlinghouse had previously indicated a resolution by summer’s end. However, McBride noted that if there is a delay, a ruling by the end of September is likely.

Despite hopes for a settlement, legal experts like Bill Morgan and Marc Fagel have downplayed the possibility. Morgan described a settlement as “unlikely” and suggested that if it occurs, it would likely be a compromise rather than a decisive victory. Ripple may still face challenges related to XRP sales beyond December 2020 and future sales.

Market Reaction to XRP Token Unlock

In a recent development, Ripple unlocked 1 billion XRP, worth approximately $579.43 million. This move led to an 8% drop in XRP’s price, breaching the critical $0.60 support level. The substantial unlock has sparked further speculation that Ripple might be preparing for a settlement with the SEC, as it could be a strategic move to address potential penalties and initiate a resolution.