Ripple is on the precipice of an exciting development in the cryptocurrency sector. In a recent fireside chat at Korea Blockchain Week, CEO Brad Garlinghouse revealed that Ripple’s upcoming stablecoin, pegged to the U.S. dollar, is just weeks away from launch. This announcement comes at a time when the crypto community is closely monitoring regulatory developments and market dynamics, especially concerning the behavior of key regulatory bodies like the SEC.
Ripple’s New Stablecoin: A Game Changer on the Horizon
During his talk, Garlinghouse expressed confidence in the imminent release of Ripple’s stablecoin, tentatively named Ripple USD (RLUSD). He indicated that the project is currently in a “private kind of closed beta” phase, hinting at extensive preparations prior to the official rollout. “We’re in a private kind of closed beta,” he explained. “RLUSD has been minted in that framework. We will certainly launch soon. Weeks, not months.”
This announcement follows Ripple’s testing of RLUSD on two blockchain networks, showcasing the company’s commitment to innovation in the stablecoin sector. As Garlinghouse noted, the launch aims to provide credibility in a space often dominated by established players like Tether (USDT) and USD Coin (USDC), which currently hold approximately 70% and 21% of the stablecoin market, respectively.
The Motivations Behind Ripple USD
Garlinghouse elaborated on the motivations driving the stablecoin’s development, linking it to the volatility seen in stablecoins like USDC during critical market moments. “Eighteen months ago, USDC depegged, and we felt like there was an opportunity for a credible player that’s already working with lots of financial institutions to lean into that market,” he stated. This reveals Ripple’s strategic positioning to offer a reliable alternative for users and institutions alike.
A Reluctance for an U.S. IPO
When asked about a potential IPO in the United States, Garlinghouse’s response was resolute. He expressed “no interest” in taking Ripple public in the U.S. environment, citing the SEC’s antagonistic approach to the crypto industry as a primary concern. “SEC approved Coinbase going public in the United States and now the SEC is suing Coinbase for the same things they approved,” he remarked. This sentiment is echoed in his advice to budding entrepreneurs: “Don’t incorporate in the United States. You’re just asking for more legal bills.”
Political Outlook: Crypto and the Upcoming Election
In a broader discussion about the future of cryptocurrency regulation, especially in light of the upcoming presidential elections, Garlinghouse expressed optimism. “I think no matter who wins the United States election, we’ll see new leadership in the U.S. SEC,” he speculated, emphasizing that the current SEC leadership has hurt its standing across political lines. “I heard that loud and clear at the Democratic National Convention. I heard that loud and clear at the Republican National Convention,” he added.
Ripple, having recently settled a substantial legal battle with the SEC, paying a fine of $125 million instead of the proposed $2 billion, views this outcome as a significant victory. Garlinghouse noted, “There aren’t that many companies that can actually stand up to a bully. The SEC has a lot of power and it takes a lot of money and a lot of conviction to fight that.”
Reflections on SEC Actions
Garlinghouse also commented on the SEC’s recent enforcement actions against NFT marketplace OpenSea, labeling them as “unfortunate” and critiquing the agency’s position that NFTs should be classified as securities. He argued, “Just because someone might speculate on the price of a piece of art that it might go up, doesn’t make it a security.” This stance reflects a growing concern among industry players regarding the implications of regulatory overreach.
The Path Forward for Crypto Legislation
Despite these challenges, Garlinghouse struck a hopeful tone regarding the prospects for clearer legislative guidance around cryptocurrencies. He mentioned the Financial Innovation and Technology for the 21st Century Act (FIT 21) as a potential catalyst for positive developments in the regulatory landscape. “We may finally get legislative clarity again, not from the leadership of the SEC, which one would expect, but from our elected officials,” he noted, reinforcing the need for cooperative dialogue between the crypto industry and lawmakers.
The evolving narrative surrounding Ripple underscores a significant moment in the crypto space, as the company navigates regulatory challenges while preparing to introduce a new stablecoin that promises to reshape market dynamics. With anticipated changes in political leadership and legislative clarity on the horizon, the next few months could be pivotal for Ripple and the broader cryptocurrency market.
