Ripple Introduces RLUSD to Connect Traditional Finance

• Ripple is set to launch its own stablecoin, Ripple USD (RLUSD), in 2024, available on the XRP Ledger and Ethereum networks.
• In the Ripple v. SEC lawsuit, the SEC defended the proposed sanctions, citing a comparison to the Terraform Labs settlement.

As Ripple Inc. continues its legal battle with the U.S. Securities and Exchange Commission (SEC), it also continues to focus on other growth areas of the company. One such area is that Ripple is preparing to introduce its own native stablecoin Ripple USD (RLUSD) to the market. This new stablecoin will serve as a bridge between the crypto industry and the traditional financial market, according to the Crypto News Flash Report.

Earlier this week, Ripple announced its new stablecoin, Ripple USD (ticker RLUSD), which will be available on the XRP Ledger and Ethereum networks. The launch is planned for 2024, although the exact date remains unknown.

Although it is not yet live, the stablecoin has already faced criticism from the United States Securities and Exchange Commission (SEC), which called it an “unregistered crypto asset “.

Note that the launch of the Ripple USD RLUSD stablecoin depends on the outcome of its legal battle with the SEC. According to market analysts, the final settlement is expected to occur by the end of 2024.

Key developments in the Ripple v. SEC lawsuit

In its recent filing, the US SEC criticized Ripple for requiring a lower penalty of “no more than $10 million,” as reported by Crypto News Flash. One of the main arguments Ripple made was that there were no allegations of fraud against the company. Ripple further cited Terraform Labs’ recent judgment, stating that the $420 million civil penalty represented approximately 1.27% of its “$33 billion in gross sales.” In response to this, the SEC stated that this was not an apples to apples comparison.

A day later, in a June 14 letter to Judge Torres, the SEC defended its $4.5 billion deal with Terraform Labs and its co-founder Do Kwon. The settlement, which includes a $420 million civil penalty, was justified by the company’s bankruptcy status, its agreement to return money to investors and the firing of executives responsible for the violations.

The SEC said it calculated Terraform’s penalty based on the “gross profit from the infringing conduct,” estimated at more than $3.5 billion, resulting in a penalty rate of nearly 12%, according to the SEC. . Crypto News Flash Report. The regulator argued that applying the same ratio to Ripple’s gross profits of $876.3 million, which it seeks to return, would result in a civil penalty of $102.6 million. “Such a low penalty would not satisfy the purposes of civil penalty laws,” the SEC said.

Interestingly, Ripple’s Chief Legal Officer Stuart Alderoty viewed the SEC’s $102 million penalty request as a positive development from the previous $2 billion request.

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XRP Price Action

Ripple’s native token has seen significant declines over the past week, currently trading at around $0.47. However, analysts like EGRAG CRYPTO on Twitter remain optimistic, viewing the current price level as a buying opportunity.

The trader pointed to the Relative Strength Index (RSI), which has been hitting lows in recent days. Currently, the RSI stands at 42, after falling below 25 last week.

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