XRP News: Ripple’s RLUSD Stablecoin Sparks Speculation Amid Ongoing SEC Lawsuit

XRP News: Ripple’s RLUSD Stablecoin Sparks Speculation Amid Ongoing SEC Lawsuit

XRP News – The recent launch of Ripple’s RLUSD stablecoin website has ignited significant speculation within the XRP community regarding the potential resolution of the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). While some view this development as a sign that Ripple is nearing the end of its legal challenges, others within the cryptocurrency space advise caution, suggesting that a new lawsuit may be on the horizon.

Could Ripple Face Another SEC Lawsuit?

When questioned about the implications of RLUSD on Ripple’s current SEC lawsuit, legal expert and XRP advocate Fred Rispoli offered his perspective. Rispoli, known for his strong support of XRP, recently commented on the potential legal ramifications of the RLUSD website launch. He remarked, “Any issues the SEC has with $RLUSD are for another lawsuit and cannot be bootstrapped to one that is about to end!”

This statement highlights the possibility that even if Ripple’s current legal entanglement with the SEC concludes, the company may still face additional scrutiny over its new stablecoin venture. Ripple’s President Monica Long previously indicated that RLUSD was slated for a 2024 launch, and the establishment of a dedicated website suggests that the project is in its final preparatory stages.

Although the exact launch date remains undisclosed, industry observers are closely monitoring the progress of the RLUSD stablecoin. Many XRP enthusiasts are hopeful that the stablecoin’s launch signals an imminent resolution to Ripple’s ongoing legal challenges.

However, there is speculation that Ripple could avoid the risk of further legal action if a pro-crypto administration takes office following the November elections. Former President Donald Trump has repeatedly expressed a pro-crypto stance, and former SEC attorney Marc Fagel believes that a shift in the agency’s approach toward the cryptocurrency industry could occur under a crypto-friendly leadership.

Anticipated Timeline for Remedies Ruling

Speculation has further intensified following a recent post on X (formerly Twitter) by Sean McBride, a former Ripple director, regarding the likelihood of Judge Torres issuing a ruling in August. The post has garnered considerable attention from both the XRP community and the broader cryptocurrency sector. McBride suggested there is a “50/50” chance of a ruling this month.

One user responded by noting that Ripple CEO Brad Garlinghouse had previously predicted a resolution to the XRP lawsuit by the end of summer. McBride then added that if there is a delay in the ruling, it is highly probable that Judge Torres will deliver her decision by the end of September.

However, the idea of a possible settlement between Ripple and the SEC has been downplayed by legal experts. Pro-XRP lawyer Bill Morgan and former SEC attorney Marc Fagel have both expressed skepticism about the likelihood of a settlement.

Morgan recently described a potential settlement as “unlikely,” suggesting that if one were to occur, it would likely be a compromise rather than a resounding victory. He also noted that Ripple could still face significant legal challenges related to XRP sales beyond December 2020 and potential future sales of the token.

XRP Market Developments: 1 Billion Token Unlock

The ongoing legal saga has prompted a variety of opinions from legal experts and XRP supporters alike. Ripple’s executives, including CEO Brad Garlinghouse, have made comments that have further fueled speculation about a potential resolution.

In its Q2 2024 XRP market report, Ripple expressed confidence in a “fair” outcome, stating their belief that the central ruling—that XRP is not a security—will remain intact regardless of the lawsuit’s final outcome.

The SEC, however, has demanded a substantial penalty of $1 billion (excluding interest) from Ripple for alleged violations. Ripple, on the other hand, has indicated a willingness to settle for no more than $10 million. This wide disparity suggests that reaching a settlement may be challenging.

Adding to the intrigue, recent news reported the unlocking of 1 billion XRP, valued at approximately $579.43 million. This action led to an 8% drop in XRP’s price, breaking the critical $0.6 support level. The timing of this move has sparked further speculation that Ripple might be preparing to settle the lawsuit by using these funds to pay off penalties and reach a resolution.