Ripple Issues Important Warning About Its Upcoming Stablecoin: Details

TL;DR

• Ripple has warned users to be wary of false claims that its stablecoin is live.
• The SEC labeled the product an unregistered asset, adding to ongoing legal disputes with the company.

Watch out for the XRP army

Earlier this year, Ripple announcement it will launch a stablecoin pegged 1:1 to the US dollar. It will be called RLUSD and will be available on XRP Ledger (XRPL) and Ethereum. According to CEO Brad Garlinghouse, the product could serve as a bridge between the cryptocurrency industry and traditional finance.while Many analysts believe that its possible launch could have a positive impact on the price of XRP.

Last week, the Ripple team struck over 800,000 RLUSD on XRPL and Ethereum, representing 99% of the total supply. This has caused speculation that the stablecoin is already live.

The companyHowever, assured that it is still in private beta testing. He also warned users to be wary of dubious individuals who claim otherwise.

PSA: Ripple USD (RLUSD) is still in private beta, and while you can see some on-chain activity, it is not yet available. Beware of anyone claiming to distribute #RLUSD.

Keep an eye on the latest updates and stay vigilant against scams!

– Ripple (@ripple) September 30, 2024

Many X users thanked Ripple for the warning. Popular community figure Vet was among those who reacted to the post, saying:

“Unfortunately, a necessary public service announcement. Even accounts with a golden checkmark pretend to be people and scam them. Certainly Stay vigilant, and the best thing is to do nothing, not click on any links and wait for official sources.”

Controversy with the SEC…again

Ripple’s plans to introduce a stablecoin have caused huge enthusiasm in THE cryptocurrency space. However, this was not well received by everyone, the United States Securities and Exchange Commission (SEC) describing it is a “new, unregistered crypto asset.”

This is not the first feud between the entities. For the uninitiated, the SEC continued Ripple in December 2020, accusing it of conducting an unregistered securities offering by selling XRP tokens. The case has seen many developments over the years, reaching a milestone in August 2024.

At the time, Judge Torres determined that sales of XRP on secondary markets to retail investors did not constitute securities transactions. Nevertheless, she ordered Ripple to pay $125 million for breach certain securities laws.

This figure represents a massive reduction from the $2 billion initially sought by the regulator, leading many to declare the decision a major victory for Ripple. Both sides have until October 7 to appeal, and the SEC appears more likely to do so.

In recent weeks there have been been increased rumors about such a potential scenario. American lawyer Fred Rispoli, for example, think the chance of appealing is 60%.