tl;dr
The U.S. Securities and Exchange Commission has targeted Ripple's recently announced stablecoin, describing it as an "unregistered crypto asset." Ripple's dollar-backed cryptocurrency, set to launch on the XRP Ledger and Ethereum, aims to bridge traditional finance with crypto. The SEC is seeking a ...
The U.S. Securities and Exchange Commission has targeted Ripple's recently announced stablecoin, describing it as an "unregistered crypto asset." Ripple's dollar-backed cryptocurrency, set to launch on the XRP Ledger and Ethereum, aims to bridge traditional finance with crypto.
The SEC is seeking a permanent injunction against Ripple, claiming its business is heavily reliant on selling XRP to On-Demand Liquidy customers. Ripple has been accused of attempting to re-litigate summary judgment arguments, with the SEC emphasizing the need for a substantial penalty.
In its recent filing, the SEC described the stablecoin as an "unregistered crypto asset." Ripple announced its dollar-backed cryptocurrency in early April, which will be launched on the XRP Ledger and Ethereum to bridge traditional finance with crypto.
The SEC claims that a permanent injunction should be granted because Ripple's business is based almost entirely on the sale of XRP to On-Demand Liquidy (ODL) customers. The SEC has also stressed that Ripple needs to pay a large penalty that "punishes and deters," insisting that a penalty of merely $10 million would not meaningfully punish its violations.
Ripple's top lawyer expressed optimism about leaving the lawsuit behind, remarking that Ripple was "closer than ever" to putting the lawsuit behind them, despite the SEC's actions.
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